Acts and Regulations

2014, c.105 - Crown Construction Contracts Act

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Document at 23 September 2019
2014, c.105
Crown Construction Contracts Act
Deposited December 30, 2014
Definitions
1The following definitions apply in this Act.
“contractor” means a person who contracts with the Crown to construct, repair or alter land or structures owned or administered by the Crown.(entrepreneur)
“Crown” means the Crown in right of the Province and includes a minister of the Crown and a corporation or other agency prescribed by regulation.(Couronne)
“material worker” means a person having a contract with a contractor or a subcontractor for the supply of material to a contract.(fournisseur de matériaux)
“payment bond” means a bond held as security for the payment of certain classes of persons performing labour or services or supplying materials in connection with a contract.(cautionnement de paiement)
“subcontractor” means a person having a contract with a contractor, and includes a person having a contract with a subcontractor who has a contract with a contractor.(sous-traitant)
“supplier” means a person having a contract with a contractor or a subcontractor for the provision of goods and supplies to a contract.(fournisseur de biens et d’approvisionnements)
“worker” means a person who has a contract with a contractor or a subcontractor to provide work on a contract.(travailleur)
R.S.1973, c.C-36, s.1; 1981, c.19, s.1; 2009, c.48, s.1
Application
2This Act applies to every contract for the construction, repair or alteration of land or structures owned or administered by the Crown.
R.S.1973, c.C-36, s.2; 1979, c.15, s.1
Enforcement of performance penalties
3If a contract provides that a contractor shall pay a penalty if he or she fails to complete the performance of the contract within the time stipulated in the contract, or any extension granted under the contract, that provision is enforceable against the contractor despite the following:
(a) the penalty is not a pre-estimate of damages likely to be caused by non-performance by the contractor within the stipulated period; and
(b) the contract includes a provision for liquidated damages.
R.S.1973, c.C-36, s.3
Deduction of debts to the Crown from contract price
4On the direction of a minister, there shall be deducted from the amount owing to a contractor under a contract an amount equal to the amount that the contractor is indebted to the Crown, and notice shall be given to the contractor describing the debt to be satisfied out of the amount deducted.
R.S.1973, c.C-36, s.4
Extensions of time and claims for additional money
5(1)If under a contract a request is made by a contractor for an extension of time for the completion of all or any portion of the work he or she is to perform under the contract or a claim is made for additional money in respect of work he or she has performed under the contract, the Crown may delegate to any person the authority to negotiate and settle the request or claim.
5(2)A delegation under subsection (1) shall be in writing and shall stipulate the limits of the delegated authority.
R.S.1973, c.C-36, s.5
Payment bond
6(1)If an amount is due to the Crown under a payment bond, a person within a class covered by the bond is, without any act by or notice by or to the Crown and without notice to the person liable on the payment bond, an assignee of the right of the Crown to recover an amount under the payment bond equal to the lesser of the following:
(a) the amount due to the person for labour or services performed or material supplied; and
(b) the amount due to the Crown under the payment bond.
6(2)A person may only be an assignee under subsection (1) if the person
(a) performed labour or services or supplied material in connection with a contract in respect of which a payment bond is held as security, and
(b) has not been paid in full for the labour or services performed or material supplied by the person under the contract within the time provided in the payment bond for payment to the class of persons of which he or she is a member.
6(3)A person who is an assignee under subsection (1) may bring action in his or her own name to enforce payment under the payment bond, and the Crown shall not be a party to the action nor be liable for any costs in connection with the action.
6(4)A payment bond given in respect of a contract to which a minister is a party shall be in the custody of the deputy head of the department under the control of that minister.
6(5)A payment bond given in respect of a contract to which a corporation or other agency is a party shall be in the custody of the chief executive officer of that corporation or agency.
6(6)The person having custody of a payment bond shall provide a copy of the payment bond, certified to be a true copy, to a person who files with him or her an affidavit setting forth that the person has performed labour or services or supplied material under the contract with respect to which the payment bond is held and that he or she has not been paid in full for it.
6(7)A document purporting to be a copy of a payment bond certified by the person having custody of the original is, without proof of the signature of the person, admissible in evidence in a court or before a person having by law or the consent of parties authority to hear, receive and examine evidence in an action to recover on the bond and has the same probative force as the original document would have if it were proven in the usual way provided by law.
R.S.1973, c.C-36, s.6; 1981, c.19, s.2; 1984, c.C-5.1, s.47
Withholding of payment by Crown
7(1)Despite that a payment bond is in effect with respect to a contract, when notified in writing by a subcontractor, a material supplier, a supplier or a worker that a contractor or subcontractor has not paid the subcontractor, supplier, material supplier or worker an amount owing for work, materials, goods or supplies in connection with the contract or subcontract, the Crown may withhold from the contractor the amount owing under the contract.
7(2)When an amount is withheld under subsection (1), the Crown shall immediately advise the contractor and, if appropriate, the subcontractor of the withholding and provide details of the claim.
7(3)After advising the contractor and, if appropriate, the subcontractor, if the Crown is satisfied that the amount claimed is owed by the contractor or subcontractor to the person making the claim, the Crown may pay to that person the amount owing to him or her by the contractor or subcontractor, as the case may be.
7(4)An amount paid by the Crown under subsection (3) discharges, to the extent of the payment, the following amounts with respect to the work, materials, goods or supplies in respect of which the payment is made:
(a) the amount owing by the Crown to the contractor under the contract;
(b) the amount owing by the contractor to the subcontractor, material supplier, supplier or worker under their contract; and
(c) the amount owing by the subcontractor to the subcontractor, material supplier, supplier or worker, if the claim is made by that person.
7(5)When a claim is submitted under this section to the Crown against a subcontractor by a subcontractor, material supplier, supplier or worker and the Crown pays the claim, the contractor may
(a) if payment has not already been made by the contractor to the defaulting subcontractor, withhold payment to that subcontractor for the subject matter of the claim, or
(b) if payment has already been made by the contractor to the defaulting subcontractor, recover from that subcontractor the amount of the claim.
R.S.1973, c.C-36, s.7; 1981, c.19, s.3; 2009. c.48, s.2
Regulations
8The Lieutenant-Governor in Council may make regulations
(a) prescribing the procedures to be used in the submission of tenders for the construction, repair or alteration of land or structures owned by the Crown;
(b) prescribing the basis on which tenders may be rejected;
(c) authorizing the person having charge of a public tender opening to exercise his or her discretion in the rejection or acceptance of tenders when matters not covered by the regulations arise;
(d) prescribing the type of security to be provided by a tenderer and the security to be provided by the successful tenderer on being awarded a contract;
(e) prescribing the type of limits of insurance to be provided by a contractor;
(f) prescribing machinery rental rates;
(g) prescribing forms to be used in the administration of contracts;
(h) prescribing procedures to be used in the administration of construction contracts;
(i) respecting the procedures to be followed with respect to claims submitted under section 7 and prescribing terms and conditions for the withholding, payment and release of money by the Crown under that section;
(j) prescribing corporations and other agencies to be included in the definition “Crown”.
R.S.1973, c.C-36, s.8; 1981, c.19, s.4
N.B. This Act was proclaimed and came into force February 9, 2015.
N.B. This Act is consolidated to February 9, 2015.