Under the “Honesty” Microscope: A New Approach to Reading Construction Claims

In late 2014, the Supreme Court of Canada recognized an “organizing principle” of good faith and a duty to act honestly during the performance of a contract.

In late 2014, the Supreme Court of Canada recognized an “organizing principle” of good faith and a duty to act honestly during the performance of a contract. This duty to act honestly and the principle of good faith are new standards which will require everyone on the project team to give thoughtful consideration to their contractual rights and remedies. In the event of a dispute arising from the submission and/or evaluation of a contract claim, the parties conduct will be placed under a “judicial microscope” and to the extent a party’s conduct does not pass the honesty and good faith standards, criticism will likely follow.