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International In-house Counsel Journal logoInternational In-house Counsel Journal logo

Owner In-House Counsel Concerns in Large Construction Contracts

Abstract

When an owner contracts for a new large energy infrastructure project in Canada there are many issues they need to consider before, during and after the contract has been signed. In-house counsel can play a vital role in helping project teams achieve the desired outcome of an on time and on budget project, but only if they are diligent and involved long before a contract is ever signed. This paper will outline some of the major concerns an owner should turn their mind to in the contracting process. In Canada, there is a very well-developed body of law on the Invitation to Bid process and this will be discussed in comparison with a Request for Proposals process, with pros and cons for each. Risk allocation between the parties and the maturity of the scope of work are also major considerations in determining the correct contract pricing methodology and should also be explored in depth with the project team. Other major issues will be discussed including change orders, recovery plans, liquidated damages, dispute resolution and good faith dealings.

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Author

Portrait image of Shannon Onook
Shannon Onook
Senior Legal Counsel, TransCanada Corporation, Canada

Shannon Onook is Senior Legal Counsel at TransCanada PipeLines Limited, where she has practiced in the project and procurement and liquids commercial legal departments for the last 14 years. She attended both the University of Alberta and the University of Calgary and now lives in Calgary with her family.

Company

TransCanada Corporation

TransCanada PipeLines Limited is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and liquids pipelines, power generation and gas storage facilities. TransCanada operates one of the largest natural gas transmission networks that extends more than 91,900 kilometers, tapping into virtually all major gas supply basins in North America. TransCanada is a leading provider of gas storage and related services with 653 billion cubic feet of storage capacity. A large independent power producer, TransCanada currently owns or has interests in approximately 6,100 megawatts of power generation in Canada and the United States. TransCanada is also the developer and operator of one of North America's leading liquids pipeline systems that extends approximately 4,900 kilometers, connecting growing continental oil supplies to key markets and refineries.

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