In 2014, Twister Developments Ltd. ("Twister") and 1406676 Alberta Ltd. ("140") entered into an agreement to construct two commercial buildings in Fort McMurray.
Twister began construction, but the relationship was terminated by 140 in July 2016, before the project was completed.
Key Issues:
Contract Dispute:
The court found the relationship was governed by a cost-plus contract, despite signed fixed-price contracts. These contracts were created to secure bank financing and did not reflect the actual agreement.
Payment Owed to Twister:
Twister was found to be owed $173,012.08 for completed work. The invoices were cleared through a quantity surveyor and approved by the bank before payment.
140's Claims Against Twister:
Overpayment: The court rejected 140’s argument that it overpaid Twister, finding no basis for overpayment under the cost-plus arrangement.
Delays and Lost Rental Revenues: Delays were caused by unforeseeable issues, including permit requirements and a major fire in Fort McMurray. Twister was not held responsible for these delays or lost rental revenues.
Deficiencies in Work: Twister was not given a reasonable opportunity to rectify any deficiencies before being removed, so 140 could not claim repair costs.
Conclusion:
Judgment: 140 must pay Twister $173,012.08. No further payments are owed by Twister for alleged deficiencies, delays, or overpayment claims.
