Dig Co. Payment Dispute: A Construction Contract Law Case Study

This case study examines a construction contract dispute involving Dig Co., an excavating company, and Site Ltd., a subcontractor to Portal Inc., in the context of Ontario's construction law. Dig Co. is claiming $500,000 for services rendered and seeks remedies for non-payment. The analysis covers potential legal remedies such as damages (restitution, reliance interest, and expectancy principle) and specific performance. Key considerations include the terms of the contracts between Portal Inc. and Site Ltd., and Site Ltd. and Dig Co., particularly clauses related to dispute resolution, notice periods, and payment terms. The study also addresses the implications of Ontario's Construction Act, focusing on prompt payment provisions, proper invoicing requirements, and limitation periods for claims. Furthermore, it touches on procurement and project delivery options, including public-private partnerships and alternative financing arrangements, while emphasizing the importance of compliance with applicable purchasing laws and trade treaties. The case highlights the complexities of construction contracts and the legal avenues available to subcontractors facing payment disputes.