Time is Money: The Condominium Developer's Guide to Delay Claims

“Time is money” is an appropriate motto in the fi eld of high-rise condominium projects. Yet, delays are an expected, although unfortunate, reality of such projects.

Introduction

The developer is at the project’s centre, orchestrating the progress of the project and dealing with all others involved in the process including:

• unit purchasers;
• contractors;
• lenders;
• consultants, which may include architects, engineers and cost consultants;.
• the municipality; and
• Tarion.

A developer is vulnerable to damage from delays because the project revenue is fixed early in the process by the sale price of the condominium units. Return on invested equity is always diminished by delays. Further, some project costs may be variable and sensitive to delays, such as financing costs, especially where there is a variable interest rate, and possibly construction costs, depending on whether the contracts are “stipulated price” or “cost plus”. When project costs are sensitive to delays, the developer’s ultimate return on investment is also sensitive to delay.

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Barbara Green is a Partner in the Commercial Litigation Group at Robins Appleby LLP and an Ontario lawyer with over 20 years’ experience in employment law, estates litigation, and commercial litigation. She often represents employers, employees and businesses in complex disputes. Recognized in Best Lawyers Canada, Barbara has been featured on CBC, Global News and Newstalk 1010.

At Robins Appleby, we have been providing legal advice for over 70 years to entrepreneurs, businesses, financial institutions, and foreign companies operating in Canada. Located in Toronto's financial district, our firm is trusted by clients to help solve critical, time-sensitive issues. We offer a wide range of legal services including business and transactions, affordable and social housing, litigation and dispute resolution, commercial real estate development, tax law, employment law, and estate planning.