Tendering Law Update
In our Logo Notebook Winter 2007/2008 Issue No. 64, we told you about the important British Columbia Court of Appeal decision in Tercon Contractors Ltd. v. British Columbia. The Court allowed the Province’s appeal and overturned the 3.3 million dollar trial judgment awarded by the B.C.Supreme Court to Tercon. We recommended that you revise your tendering documents to include the “no claim for compensation” clause the Court of Appeal approved of in that case.

It appears that this story is not over yet. On Thursday, July 10, 2008, the Supreme Court of Canada granted Tercon leave to appeal from the B.C. Court of Appeal decision. The final chapter on whether the same or similar “no claim for compensation” clauses will be effective will have to wait until the Supreme Court of Canada gives its decision in this appeal.

In the meantime, we still recommend that you include such a clause in your tendering documentation. We will advise you once the Supreme Court of Canada has given its decision in this appeal.

Guy McDannold

This article was published in Summer 2008 and may be superseded by changes in the law at a later date. It is for general information only. Specific legal advice should be obtained from a qualified lawyer.