NEWS & EVENTS

​Alberta Infrastructure’s Updated Consulting Services Contract 

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Over the past several years, the Consulting Architects of Alberta (CAA) together with the Consulting Engineers of Alberta (CEA) and the Alberta Construction Association (ACA) have worked with Alberta Infrastructure (AI) through AI’s Industry Liaison Committee and its subcommittees to discuss consultant agreement terms in the context of the appropriate levels of risk for consultants to undertake and the lack of coverage of specific clauses by professional liability insurers.

AI introduced early drafts of its updated Consulting Services and Construction Management contract templates and our working groups reviewed commented on their terms.  The discussions were open and collaborative and the CAA is appreciative of AI’s approach to discussions with industry and the many significant changes AI undertook in response to our comments.
 

(Past) Deputy Minister Kleefeld’s memo below introduces the agreements and includes a link to the template agreements.
 

CAA Members are encouraged to review these Contracts in detail and seek legal and insurance advice prior to their use. It may be helpful to know some of key issues that remain a concern to the CAA, including the following:  

• The agreement does not include a limitation of liability for consultants. AI’s previous agreement also did not have a limitation of liability, but the new agreement explicitly states that no liability cap shall apply.  

• Arbitration remains the final step in dispute resolution. Insurers advise that this is not ideal as it may not allow consultants access to appeal or to due legal process.

• Breach of Contract, Loss of Use and Consequential Damages may not be insurable.  The agreement excludes responsibility for some aspects of consequential damages, but consultants could, for example, be seen to have responsibility for loss of use in case of delays or damages. The CAA suggests that members review proposed agreements and take these factors into consideration. Insurance policies only cover damages resulting from negligence, damages resulting from contractual undertakings may not be covered if they are not deemed to result from consultant negligence.

• In the Industry Liaison Committee discussions including the CAA, AI stated that they have accepted the principle that Geotech, Environmental and Survey services would normally be engaged by AI.  The new agreement sets out the provisions under which consultants can rely on information provided by AI’s consultants, so members can review RFPs with that in mind.

 
This Bulletin is provided for educational and information purposes only. This Bulletin is not intended to provide legal advice and should not be relied on in that respect. In addition, this Bulletin is not intended to be a complete summary of the contract or contract risks. CAA members are encouraged to seek legal advice prior to signing any contract, whether with AI or otherwise.