bdp construction nl march 2007

8/4/2019 BDP Construction NL March 2007

1/12inthisissue:

The EPC Contract What You Need To Know .................................................................................................................................................................Front Cover

Tenders Revisited By SCC: Do Owners Have a Duty to Investigate a Bidders Promises? ......................................................................................................... 3

What Weve Been Up To ............................................................................................................................................................................................................................. 5

Drugs & Alcohol An Employers Nightmare ........................................................................................................................................................................................ 6

BD&Ps Construction Team......................................................................................................................................................................................................................... 9

Contact the BD&P Construction Team ................................................................................................................................................................................................. 10

S

o yo thk yo d a ePC

Cotract? Why do yo thk so?

What dos e-P-C stad for ayway?

Prhaps what yo rally d

s a Costrc t o Cotrac tor a egrg Srcs Agrmt.

What do yo d to kow abot a ePC

Cotract? continued on page 1

From T H E G R O U N D U PMARCH 2007

Te Epc cttWhat You Need To Knowby Arnie H. Olyan and John K. Taylor


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BurnET, DuckworTh & palmEr

Arnie H. Olyan and John K. Taylor of BD&P

wrote and presented the paper The EPC

Contract and the Energy Lawyer for the

Canadian Petroleum Law Foundation in Jasperin June 2006. The paper prcises much of

what goes in to an EPC Contract. We include

below, that portion of the paper which set out

the preliminary considerations impacting the

allocation of risks and responsibilities as between

the Owner and Contractor. Other topics in the

paper such as Aligning the Parties Interests

(cost control, delay, quality, liquidated damages,

procurement strategy and process, alliance

agreements), Documentation, Change Orders,

Notice, Breach of Contract and Limitations on

Liability will be featured in future editions of

From the Ground Up.

PrelImInarY ISSueS

or Soul SearchInG

1. CompetenCy(What are We good at?)

Wh cosdrg both th flaor ad

th spcfc trms of a ePC Cotract1,

adsors to th parts shold dtfy (ad

th clts thmsls shold prosly

ha do som slf-xamato as to)

thr clts strgths ad waksss as a

orgazato ad how sch strgths adwaksss ca b ffctly ad ffctly

optmzd or mtgatd (as applcabl). For

xampl, a owr who tds to ow

ad oprat a ppl may ha lttl drct

costrcto xprc. Wh cosdrg

th ePCphass of th projct, th owr

cold (a) hr a cotractor2 (or cotractors)

to dal wth all aspcts of th pr-opratos

phas, (b) hr a fll staff to coordat ePC

actts trally, or (c) cotract for som

bldg of ths two optos. Typcally, a

owr wth lttl costrcto xprc

wll b mor comfortabl hadg rlatcotrol of a projct to a cotractor tha

wold a owr wth mor costrcto/

costrcto maagmt xprc ad

th owrs choc of cotractal framwork

shold rflct ts comfort ad comptcs

accordgly.

2. Control

Othr factors may flc ad ca dctat

th rlat dgr of cotrol th owr

wshs or th work ad th cotractal

s i f

f sd f is f

d pis

continued from cover


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trms to flow thrfrom. For xampl, dos

th owr ha a corporat cltr that

ssts o cotrol of cotrparts (ad

som cass thr rspct sbcotractors)

or dos t prfr to offload rsposblty (addally rsk) to thrd parts. Th lattr may

dcat a prfrc for mor of a trky

arragmt.

3. marketplaCe

it s oft sfl (ad may assst a clt

to st ralstc xpctatos) to dtrm

th markts apptt for aros forms of

agrmt (ad attdat rsk) ad what th

crrt drrs may b that ar assocatd

wth thos forms of cotract. For xampl,

s th marktplac sch that grg

hoss ar grally accptg of morrsk (ad prsmably mor rward) for

crta ePC work ad dos ths gratr

apptt for rsk prst a opportty for

a grally rsk-adrs owr to offload

som rsk throgh ts proposd prcg

arragmts ad othr cotractal trms?

is th marktplac for partclar goods

or srcs comptt, or domatd by

rlatly fw markt ladrs?

Qt apart from how th prst marktplac

dtrms th rsk aspcts of a ePC

Cotract s how th marktplac drstadsth tdrg procss. Whl th scop of

ths papr s ot tdd to rw th law

of tdrg ay dtal, t s far to say that

th majorty of th most sophstcatd playrs

thePC marktplac oprat wth a

drstadg of th tdrg procss that

s qt dstct from how th corts ha

proddd th partcpats to bha. Mor

oft tha ot, cotractors who partcpat

a tdrg procss atcpat that th

sbmsso of bds s mrly th frst stag

what s oft a ry xtdd gotato

procss. Oc t s dt to a cotractorthat th owr has slctd a frot rg

(prfrrd) cotractor, that cotractor wll

attmpt to gotat wth th owr a arty

of prc, rsk allocato ad othr trms that

may ot ha b dtfd a tal

tdr packag. Owrs ar oft complct

sch arragmts to crcmt th

tal tdrg rgm th hop that, wth

frthr dscssos wth a bddr or bddrs,

th prc ad othr trms of a ePC Cotract

ca b rworkd to stablsh a mtally

adatagos rlatoshp. That rlatoshp

may ltmatly b o dffrt trms tha

wr stplatd th tal tdr packag.

Owrs famlar wth sch tactcs wll

oft b lrabl to a cotractor whoapprcats that t s th oly o stll at th

bargag tabl ad who attmpts to r-

gotat trms mor faorabl tha thos

th ePC Cotract orgally proposd.

4. priorities

it s a commoly hld w that o

costrcto projcts thr ar thr ma

goals that owrs ffctly prortz. Ths

prorts ar: (a) matag bdgt, (b)

matag schdl, ad (c) stablshgad matag qalty. A owrs ordrg

of ths prorts shold b rflctd th

owrs cotractg stratgy ad, ltmatly,

som of th spcfc trms of th ePC

Cotract. For xampl, f th owrs two

most mportat goals ar to stay wth

(captal) bdgt ad o tm, th th

cotract shold mpos costs o or st forth

rwards (or both) for th cotractor f ths

goals ar achd. i ths xampl, ad to

ach ts goals, a cotractor wll cssarly

sst o a hgh dgr of cotrol or ts

work. Lawyrs mst rcogz th rlatprorty amog ths thr goals that clts

may formally or formally stablsh so that

th atr ad trms of th applcabl ePC

Cotract proprly rflct clts rlat

dsrs to ach ths goals, ad th trad-

offs hrt sch prortzato.

5. toleranCe for risk

Th most ffct ad ffct ePC Cotract

wll rcogz that th parts allocato

of rsks ad rwards mst b a propr

rflcto of th partcpats apptt for

rsk ad qst for rward. Parts oft do

ot spd sffct tm dtfyg thr

rspct trsts ths rgard ad may ot

adqatly artclat thr trsts to throw cosl, amog bsss ts wth

o orgazato or to th cotrparty. As a

rslt, th parts may b wll to th procss

of gotato wh thy dscor that thr

rspct phlosophs as to allocato of

rsk (ad rward) ar ladg to cssary

cofso ad tso that s ot codc

to falzg a agrmt.

G th log trm ad tgratd

rlatoshp that arably rslts from

xcto of a ePC Cotract, t s sstal

that th parts drstad thr ow goals

ths rgard ad proprly coordat thractts dr th ePC Cotract to rflct

ths. Th los shar of rsk shold b bor

by th party most abl ad wllg to maag

that rsk ad sch party shold b rwardd

a commrcally rasoabl fasho. By

mproprly allocatg rsk, th rlatoshp

btw parts wll b marrd by rstmt,

mch lk a trobld marrag. Parts may

th maplat th systms that ha

b stablshd th cotract (sch as

dr chag ordrs, rportg systms,

ad approal mchasms) a ffort to

rdstrbt th rsk ad rward ordr toclaw back rghts ad oblgatos that may

ot ha b proprly artclatd at frst

stac th ePC Cotract.

Note: Copies of the full paper are available upon

request to the Managing Editor.

Footnotes

1 For ths artcl, ePC cotracts collctlyclds dsg-bld, grg, qpmtprchas, costrcto maagmt, prcostrcto, ePC ad aros forms ofdsg-bld-oprat agrmts.

2 For th prposs of ths papr, th trmcontractor wll b sd as a grc trmthat cold cld cosltats, grs,costrcto cotractors, costrctomaagrs, ad grg, procrmt adcostrcto maagmt (ePCM) cotractorswho cotract wth owrs, oprators addloprs (collctly, owrs) wthrspct to ePC Cotracts.

Giv g d

igd isip

iviby ss

f xi f

ePc c, i is

ssi pis

dsd i

gs i is gd d

ppy di i

iviis d ePc

c f is.


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introduCtion

i Jaary 2007, th Sprm Cort of Caada hadd dowts dcso Double N Earthmovers Ltd. v. Edmonton (City)1.

Ths cas, whch cosdrs a tdr call that took plac or

twty yars ago, addrsss a mbr of sss rlatg to th

Cotract A / Cotract B framwork that has gord th

tdrg procss Caada sc th Sprm Cort of Caadas

1981 dcso R. v. Ron Engineering2.

faCtsi J 1986, th Cty of edmoto (th Cty) ssd a tdr call for

th spply of hay mobl qpmt ad oprators for a 30-moth

cotract to hadl rfs at a ladfll st opratd by th Cty. it was

a spcfc rqrmt of th tdr that all hay qpmt sd

for th work mst b 1980 modls or wr. Followg sbmssoof th bds, th Cty trd to gotatos wth th platff

Dobl n earthmors Ltd. (Dobl n) ad a ral bddr, Srway

Costrcto of Albrta Ltd. (Srway). Drg gotatos, Dobl

n formd th Cty that ts ral Srway dd ot ow ay 1980

or wr hay qpmt as t had rprstd ts bd, ad so

cold ot mt th trms of th tdr or th fal cotract. Th Cty

rspodd that, f ths was th cas ad Srway was awardd th

cotract, th Cty wold b ttld to sst that Srway prod

1980 or wr qpmt. Crcally, t was latr dtrmd that

th Cty dd ot kow for a fact that Srway cold ot spply th

qpmt as promsd tl aftr thy had awardd th work.

Th Cty sbsqtly awardd th cotract to Srway, who was thlowst bddr. Srway th formd th Cty that th work wold

b compltd wth 1977 ad 1979 qpmt, ot th 1980 or wr

qpmt that th cotract rqrd. Th dc showd that Cty

offcals wr agrd at ths ws bt mad th dcso to allow

th mattr to l pacflly ad dd ot sst that Srway mt th

trms of th cotract by spplyg wr qpmt.

history in the CourtsDobl n sd th Cty for brach of th Cotract A cratd

wh Dobl n sbmttd a complat bd to th Cty, clamg

th profts t wold ha ralzd had Dobl n b awardd

Cotract B (th costrcto cotract)3. Th tral jdg fod

that Srway had dlbratly tdd to dc th Cty bysbmttg a bd t cold ot hoor ad plag to latr (aftr

th cotract was awardd) prsad th Cty to prmt t to s

oldr qpmt. e so, all thr corts4 harg th mattr,

th Albrta Qs Bch, th Albrta Cort of Appal ad th

majorty of th Sprm Cort of Caada, fod for th Cty,

sstally dtrmg that th Ctys rght to sst o complac

wth sstal trms followg accptac wold sr th

tgrty of th procss. Th Sprm Cort of Caada dcso, a

clos 5:4 dcso of th fll Cort, adds mportat dtals to th

oprato of th Cotract A / Cotract B modl5 orgally otld

Ron Engineering.

Tedes revisited By Scc:Do Owners Have a Duty to Investigate a Bidders Promises?

by Simon J. Lee, P. Eng., Student-at-Law


5/12

did the City have a dutyto investigate sureWays Bid?

Dobl n frst argd that th Cty had a dty to stgat whthr

th qpmt Srway proposd dd actally mt th Ctys

spcfcato. Th tdr docmts allowd th Cty to spct thqpmt pror to award. Howr, th SCC fod that whl th Cty

had th right to spct th qpmt, t dd ot ha a dty to do

so, .. th Cty cold choos whthr or ot to spct th qpmt

pror to award. Th SCC fod that thr s o mpld dty rqrg

a Owr to stgat to s f bddrs wll rally do what thy

proms thr tdr. Ths wold appar to mak ss; t wold

b mpossbl for a Owr to chck that a Cotractor s capabl of

flfllg ry oblgato of a cotract pror to trg to t. What

s srprsg prhaps, s that th SCC fod that, aftr Dobl

n had formd th Cty that Srway cold ot mt th trms of

th tdr, o sch dty aros. Th for dsstg jdgs wr of

th w that th oblgato to accpt oly a complat bd wold b

maglss f t dd ot cld th dty to tak rasoabl stps tosr th bd s complatpartclarly as ths cas whr th

qpmt partclars cold b rfd th Ctys ow rcords.

did the City engage inimpermissiBle Bid shopping?

Dobl n also argd that th Ctys pr-award gotato wth

Dobl n ad Srway amotd to mprmssbl bd shoppg.

Th SCC adoptd th Brtsh Colmba Cort of Appals dfto6 of

bd shoppg as codct whr [a owr] ss th bds sbmttd

to t as a gotatg tool, whthr xprssly or a mor cladst

way, bfor th costrcto cotract has b awardd. Howr,

th tdr docmts ssd by th Cty clarly statd that:

[C]hags tdrs wll ot b prmttd aftr th Tdrsha b opd, unless negotiated with the lowest evaluated

tender. [mphass addd].

i ths cas, th SCC fod that th Cty clarly had th rght to

gotat wth Srway, as t was th lowst bddr. Th SCC addd

that th Cty cold b crtczd for gotatg wth Dobl n as

t was ot th lowst alatd tdr, bt sch gotato was

actally to Dobl ns bft, sch that Dobl n had o bass for a

complat ths rgard.

did the City aWard the ContraCton terms other than those set outin the tender doCument?

Dobl n also argd that th Cotract B awardd by th Cty toSrway was o dffrt trms tha thos cotad th bd

docmts, (.. cotrary to th bd docmts, th fal cotract was

for th s of qpmt oldr tha 1980).

Th SCC fod that o o at th Cty kw for a fact that Srway dd

ot ha 1980 qpmt tl aftr th award of th cotract. i ths

cas, th award of th cotract was ald, ad thr was o dc of

collso btw th Cty ad Srway to dsrgard th trms of th

tdr procss7. Prsmably, th Cort sags that ay problms

rlatg to a cotractor bg abl to mt th trms of ts bd shold

b dalt wth by forcmt of th trms of Cotract B aftr award.

t Scc fd is ipid dyqiig o ivsig s if bidds

i y d y pis i i d.

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5

did the City BreaCh its duty to treat allBidders fairly and equally?

Fally, Dobl n argd that trg to a cotract wth Srway,

th Cty brachd a mpld trm of Cotract A to trat all parts

qally ad farly by prmttg Srway to spply qpmt thatdd ot coform wth th trms of Cotract B8. Th SCC dsagrd

ad fod that th trms of Cotract A (ad ths th mpld dty to

trat all bddrs farly) trmat po th award of th cotract ad

crystallsato of Cotract B. Th codct that Dobl n complad

of occrrd aftr th award of Cotract B, wh th Cotract A dty

o logr xstd.

Th dsstg jdgs took a dm w of th actos of both Srway

ad th Cty, statg at para. 104 as follows:

Ths s th catoary tal of a tdrg procss go

badly wrog. Althogh som bsss cotxts parts

mght dcd to tr a bld y to cotractal accracs

ad ambgts, th tdrg procss s dffrt. it s aprocss whch farss ad tgrty ar of paramot

mportac.

Th for-jdg dsst cocldd that th Cty brachd ts oblgato

to accpt oly a complat bd ad brachd ts dty to trat all

bddrs qally ad farly. it wold ha gratd jdgmt faor

of Dobl n.

ConClusions

i ths cas, th SCC has prodd sral mportat addtos ad

clarfcatos to th law of tdrg lad ot th Ron Engineering

l of cass:

1) Th mpld trm Cotract A that th Owr mst trat all

bddrs farly ad qally trmats o award of Cotract B.

2) A Owr has o dty to qr as to whthr a bddr s capabl

of mtg th trms of Cotract B pror to awardg t. Howr, f

th Owr does choos to qr pror to th award of Cotract B

ad dscors that a bddr caot mt th trms of Cotract B, th

Owr prsmably caot th award Cotract B to that Cotractor

wthot gg th othr bddrs th opportty to rs thr bds

accordgly.

A dffrt rslt wold ha b rachd f th Owr had actly

colldd wth Srway drg th bd procss, or f th Owr was

awar that Srway cold ot mt th trms of Cotract B pror to

awardg t. i ths cas, th Cort wold prsmably ha fod

that th award of th cotract was a sham ad that th owr had

brachd ts dty to trat all bddrs qally ad farly.

Footnotes

1 2007 S.C.C. 32R. v. Ron Engineering & Construction (Eastern) Ltd. [1981] 1 S.C.C. 1113 S From the Ground Up, nombr 2005, for a dtald dscrpto of th

Cotract A / Cotract B modl. i smmary, th Cotract A / Cotract B

modl stats that a cotract (Cotract A) arss btw a bddr adth owr po sbmsso of a bd, rrspct of whthr th actalcostrcto cotract (Cotract B) s awardd to that bddr. Th trmsof Cotract A ar dfd by th trms th bd docmt ad also mayb mpld by dstry practc. Th sbmsso of th bd forms bothth accptac of Cotract A ad a offr of Cotract B. i partclar,Cotract A cotas a mpld dty o th Owr to trat ach bddrqally ad farly.

4 (1988) 57 Alta. L.R. (3d) 288 (Q.B.) ad (2005) 41 Alta. L.R. (4th) 205(CA).

5 S Footot 36 Staco Projcts Ltd. . Brtsh Colmba (Mstry of Watr, Lad & Ar

Protcto) (2006) BCCA 2467 Compar to, for xampl, Best Cleaners & Contractors Ltd. v. Canada [1985]

2 F.C. 293 (Fd. C.A.), whch th Fdral Crow awardd a cotract toa cotractor o th trms of th tdr call wth th dlbrat ad mtal

tt of chagg th trms of th cotract as soo as t was awardd.Th Fdral Cort of Appal fod ths was lawfl, dscrbg thaward as a sham.

8 S Martel Building Ltd. v. R., [2000] 2 S.C.R. 860, whch frst dtfdth Owrs dty to trat all bddrs farly ad qally

What Weve Been Up ToJoh K. Taylor ad Smo J. L prstd a lcho smar for th mploys of a costrcto clt o tdrg sss

o Ja.9, 2007.

Jams T. Swaso of th BD&P itllctal Proprty & Tchology Grop spok o elctroc Docmt Maagmt

Costrcto Makg Sr Yo Ha th elctroc Data Yo nd, Wh Yo nd it at th Costrcto Sprcofrc

hld o Jaary 23, 2007.Dad H. Strad codctd a prstato at a clts m st otlg th atr ad th pros ad cos of prformac

bods ad lttrs of crdt o Fb.21, 2007.

Smo J. L has facltatd a srs of projct maagmt workshops for a larg, tratoal grg ad romtal

cosltacy.

Ar Olya, crrt Char of th Sothr Albrta Costrcto Sbscto of th Caada Bar Assocato (CBA), rmds

or radrs who ar CBA mmbrs, that thy ca cotact th CBA Offc at 263-3707 f thy wsh to bcom mmbrs of th

Costrcto Law sbscto ad aal thmsls of som costrcto camaradr as wll as a arty of topcs that ar lkly

to b of partclar trst to thm.


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introduCtion

Workplac drg ad

alcohol tstg ca

b a mf ld formployrs Caada.

Whl ry mployr

wold xpct that t has a rght to prt

a mploy from workg whl dr th

flc, dtcto of alcohol or drgs has

b ad rmas a dffclt targt to ach.

A addcto or dpdc o drgs or

alcohol s cosdrd a physcal or mtal

dsablty or both. employrs ar prohbtd

dr procal ad fdral hma rghts

lgslato from thr rfsg to mploy

or trmatg a mploy bcas of a

physcal or mtal dsablty. Ths has ptmployrs a partclarly dffclt posto

as mployrs ar also oblgd to crat ad

mata a saf workplac romt, ad

may b xposd to lablty f a mploy

cass prsoal jry or proprty damag

to othr mploys th cors of hs or

hr mploymt. To frthr complcat

mattrs, a post tst of a mploy

may trggr a dty to accommodat o th

part of th mployr. Flfllg ths dty to

accommodat may b a costly ad tm-

cosmg daor.

Crtaly mployrs ha attmptd tocorporat dffrt forms of drg ad

alcohol tstg th workplac, sch as

pr-mploymt drg ad alcohol scrg,

post-accdt drg ad alcohol tstg or

radom tstg o th job. Howr, sch

polcs ha com dr scrty by hma

rghts commssos ad corts Caada

ad th jrsprdc wth Albrta rmas

lmtd.

leading Case

Th smal drg ad alcohol tstg cas

Caada s th Otaro Cort of Appaldcso Entrop v. Imperial Oil Ltd., [2000]

O.J. no. 2689 (C.A.)(Entrop).

Ths cas old a mploy who was

rmod from a safty-sst posto

aftr dsclosg that h was a rcord

alcoholc, whch dsclosr was rqrd

dr th trms of th polcy. As a rslt,

th mployrs drg ad alcohol polcy was

challgd ad sbjctd to th scrty of

th corts.

Drugs & Alcohola Eyesnigteby Richard F. Steele and Susan J. Martyn

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Th Cort hld that a blakt polcy of

radom ad pr-mploymt drg ad

alcohol tstg s dscrmatory. i ordr to

jstfy sch a polcy, a mployr mst show

that th polcy s a bona fide occpatoalrqrmt (BFOR). To do so, th

mployr mst mt th thr-stp tst (th

Mor tst) as st ot British Columbia

(Public Service Employee Relations Commission)

v. B.C.G.S.E.U. (Meiorin) (1999), 176 D.L.R.

(4th) 1 (S.C.C.) at pp. 24-25 by showg:

that th mployr adoptd th stadard

for a prpos riony connc to

th prformac of th job;

that th mployr adoptd th partclar

stadard a ons n goo fi

blf that t was cssary to thflfllmt of that lgtmat work-

rlatd prpos; ad

that th stadard s rsony

ncssry to th accomplshmt of

that lgtmat work-rlatd prpos.

To show that th stadard s rasoably

cssary, t mst b dmostratd

that t s mpossbl to accommodat

ddal mploys sharg th

charactrstcs of th clamat wthot

mposg d hardshp po th

mployr. [mphass addd]

i Entrop, th Cort of Appal fod that

th mployr had mt th frst two stps of

th Meiorin tst that (1) th prpos of

th tstg, to mmz th rsk of mpard

prformac d to sbstac abs ordr

to sr a saf, halthy ad prodct

work romt, was a prpos ratoally

coctd to th prformac o th job,

ad (2) th mployr had dlopd ad

mplmtd th challgd prosos of th

polcy hostly ad good fath.

i trms of th thrd stp of th tst, whthr

th tstg prosos wr rasoablycssary to accomplsh th mployrs

prpos, th Cort of Appal mad

sgfcatly dffrt rlgs o drg tstg,

compard to alcohol tstg. Accordg to

th Cort of Appal, radom alcohol tstg

safty sst postos cold b jstfd

bcas t accomplshs th goal of dtrrg

ad dtctg alcohol mparmt. Ths was

so bcas brathalysr tstg ca show

a mploys ll of prst mparmt.

Tstg of a mploy for alcohol, aftr a

sgfcat work accdt, cdt or ar

mss ca also b jstfd o th sam logc.

Howr, ordr to flly jstfy th polcy,

th mployr also has to show that t mts ts

dty to accommodat th ds of thos whotst post. Th Cort of Appal hld ths

accommodato shold cld cosdrato

of sactos lss sr tha dsmssal ad

whr approprat, th cssary spport to

prmt th mploy to drgo a tratmt

or rhabltato program.

Th Cort of Appal tratd drug tstg ry

dffrtly. D to tchologcal lmtatos, a

post drg tst may dcat pror drg s

bt dos ot dcat prst mparmt ad

ablty to prform at work. Accordgly, th

radom drg tstg cold ot b jstfd as

rasoably cssary to accomplsh imprals

goal of a saf workplac. Frthr, th o adoly sacto of atomatc trmato

ths cas was cosdrd too harsh. impral

had fald to dmostrat why t cold

ot talor ts sactos to accommodat

ddal capablts wthot crrg

d hardshp.

i trms of th mployrs rqrmt that

a mploy dsclos a past sbstac abs

problm, whch ga rs to th ltgato

ths cas, th Cort hld that sch a

oblgato to dsclos, wthot rgard to

whthr th problm was rct or hstorc,

was a rasoabl rqrmt. Th xprt

dc showd that thr s a pot wh th

rsk of rlaps (aftr 5 to 6 yars of sccssfl

rmsso) s o gratr that th rsk of a

mmbr of th gral poplato sffrg a

sbstac abs problm. Frthr, atomatc

rassgmt ot of a safty sst posto

was ot rasoably cssary. Th mploy

qsto had b rmsso for or 7 yars

ad hs past alcohol abs had ot adrsly

affctd hs prformac o th job.

Key Points made in Entrop:

A blakt polcy of pr-mploymt

or radom drg ad alcohol tstg s

prma fac dscrmatory.

Alcohol tstg safty sst

postos may b jstfd as tstg ca

show crrt mparmt ad t ca

accomplsh th goal of dtctg alcohol

mparmt for th prpos of prodg

a saf workplac.

Drg tstg caot b jstfd as

rasoably cssary to accomplsh a

saf workplac as t caot masr

prst mparmt.

reCent alBerta Case

Th cas of Alberta (Human Rights &Citizenship Commission) v. Kellogg Brown

& Root Co., 2006 ABQB 302 (Chiasson)

old a ss of th trmato of a

mploy, Mr. Chasso, aftr a post

pr-mploymt drg tst. Mr. Chasso

was rqrd to tak a pr-mploymt

drg tst ad was trmatd days aftr

startg work wh hs tst rslts trd

p post for marjaa s. Th mploy

ackowldgd that h was a rcratoal

sr, ot a addct, ad that h had sd

marjaa f days bfor th drg scr

was codctd. Thr was o allgato thatMr. Chasso sd marjaa whl at work.

H tatd a hma rght complat allgg

dscrmato o th bass of hadcap.

Th Albrta Cort statd that th propr

way to dtrm whthr a drg tstg

polcy cold b jstfd was th Meiorin tst.

Th parts th Chiasson cas agrd that

th frst two parts of th tst wr satsfd

so th cort had to dtrm f th polcy

was rasoably cssary to accomplsh th

workrlatd prpos.

Whl ackowldgg that Kllog Brow &Root Co.s (KBR) drg ad alcohol polcs

had th ladabl prpos of promotg a saf

ad halthy work romt, th Cort fod

that ths orgazatos polcs wr orly

broadthy fald to accot for ddal

crcmstacs or prod for accommodato.

For xampl, th polcy prodd for atomatc

trmato th fac of a post drg tst.

Th Cort dd ot accpt KBRs argmt

that th pr-mploymt drg tstg was a

cssary fact of a wdr drg ad alcohol

a sig i sfy

ssiiv psiis y b

jsifid s sig

s ipi

d i pis g f dig

ipi f

pps f pvidig

sf p.


9/12

On RecORd


polcy stratgy to cotr th prssg dagr

of th growg drg cltr Fort McMrray.

i trms of th frthr argmt of KBR, that

t was too costly to prod cosllg ad

programs for prospct mploys who

tstd post, th Cort fod that whl

th dty to accommodat was crcmstatal,

flxbl ad s to b jdgd cotxt, dog

othg fll wll short of th stadard of ry

possbl accommodato to th pot of d

hardshp.

Aga, th Cort has b askd to mak

dtrmatos as to th ffctss or

forcablty of a drg tstg polcy that a

mployr has trodcd to addrss a problm

that th mploy ss th workplac.

idd, may cotracts ad cotractors rqr

sch a polcy to b plac, bfor work ca

commc. As s obos, howr, thr ar

may hrdls to orcom to sccd th

mplmtato of sch a polcy, cldg

th sgfcat problm of what a mployr

may b abl to do to th mploy, wh a

post rslt s obtad. not srprsgly,

Chaisson has b appald to th Albrta

Cort of Appal ad la has rctly b

gratd for a mbr of trrs (parts

trstd th otcom of th procdg)

to b prst ad to arg thr postos o

ths dffclt pots.

ConClusion

Whras radom alcohol tstg ca b

jstfd lmtd crcmstacs sch as

safty sst postos (or post-cdt

stgatos), radom or pr-mploymt

drg tstg wll ot lkly b jstfd

ay stato, pdg frthr tchologcal

adacmts allowg drug tstg to

masr prst mparmt. Howr,

mployrs shold bar md that

f radom alcohol tstg s jstfd

th crcmstacs, ths lads to a dty

to accommodat th mploy who tsts

post for alcohol ad clams (or appars)

to ha a addcto. To satsfy that dty,

th mployr mst cosdr optos sch

as cosllg ad rhabltato programs,

rassgg th mploy to a lss safty-

sst posto, or cosdrg a la of

absc. For ths rasos, th trodcto

of a comprhs drg ad alcohol tstg

polcy by a mployr s fraght wth dagrs

ad s xtrmly dffclt to mplmt.

...d p-py dg sig i iy b jsifid i

y sii, pdig f gi dvs ig

dg sig s ps ipi.


10/12

9

On RecORd


BD&Ps Costrcto Tam s comprsd of 15 dyamc

ltgators ad solctors who offr fll src rprstato

all facts of th costrcto dstry.

Or Tam rprsts owrs, cotractors, sb-cotractors,

grg frms, dloprs, baks, ad othr facal

stttos o a wd-rag of costrcto sss ragg from th

straght forward to th complx. W rw, gotat ad prpar trms

ad codtos ad othr docmtato for ard costrcto ad

grg projcts; prod practcal, tmly ad xprt lgal spport

throghot th costrcto procss; ad prod xprcd ltgato

srcs wh rqrd.

BD&Ps Costrcto Tam rprsts a drs rag of clt trstsfrom thos of small local cotractors to dloprs of larg-scal rgy

ad frastrctr projcts. Whthr or clts rqr th rw of a

cotract, th arbtrato of a costrcto dspt, or th coordato

ad prparato of th mlt-factd ad complx srs of trasactos

dmadd by a major projct, BD&P s abl to prod th ddal

lawyr or assmbl a tam wth th approprat dpth ad xprc.

For yor asy rfrc, w hghlght both or Sgfcat Aras of

Src ad xampls of Major Projcts whch thr ddal frm

lawyrs or th frm wr old, whch cld som of th largst

projcts carrd ot Caada.

signifiCant areas of serviCe:

ngotato ad prparato of tdr packags ad jot tr,cofdtalty, cosltg, grg srcs, ad archtctral

srcs agrmts

ngotato ad prparato of costrcto, costrcto

management, sub-contract, supply and mining services agreements

ngotato ad prparato of egrg, Procrmt,

& Costrcto (ePC) ad dsg/bld cotracts

ngotato ad prparato of egrg, Procrmt,

& Costrcto Maagmt (ePCM) cotracts

Dlay clams

idstral dsg dspts

Costrcto ad cotract dspts

Tdr dspts

egrg clams

L clams

israc sss cldg lablty, bldrs rsk, rrors

ad omssos, ad profssoal lablty corag

Rglatory ad mcpal plag approals

Prparato of costrcto scrty docmtato

Rprstato at arbtratos ad mdatos

Src as arbtrators ad mdators costrcto dspts

major projeCt experienCe:

hirni projc offshor ol prodcto platform off

coast of nwfodlad

trr Nov projc floatg prodcto, storag

& offloadg faclty olflds o Grad Baks

S Isn projc offshor atral gas rcory projct

off coast of noa Scota

horizon Oi Sns projc ol sads projct orthr Albrta

muskg Rivr Oi Sns projc ol sads projct th

Athabasca ol sads rgo of orthr Albrta

long lk Ois Sns projc dlopmt projct of

hay ol frastrctr th Athabasca ol sads rgo oforthr Albrta

tngu projc a lqfd atral gas projct idosa

Confrion brig projc fxd lk brdg across

northmbrlad Strat

Skin Isn projc larg scal ol ad gad dlopmt

projct o Sakhal islad Rssa

husky Oi Ugrr dlopmt of Lloydmstr Hay

Ol upgradr

meGo worldwd jot tr for mafactr ad

sal of thyl glycols

BD&Ps Construction Team


11/12

10

On RecORd


Contact the BD&P Construction Team

R. bruc brnr Ltgator/Solctor ............................... .............. 260-0165 [email protected]

don J. Crnicn,q.c. Ltgator .............................. .............. 260-0101 [email protected]

louis Novingr Grn Ltgator/Arbtrator ............................... .............. 260-0163 [email protected]

dvi a. Grou Solctor .............................. .............. 260-9469 [email protected]

dvi R. hig,q.c. Ltgator/Arbtrator .............................. .............. 260-0135 [email protected]

mrk t. houson Solctor .............................. .............. 260-0375 [email protected]

C d. Jonson,q.c. Solctor .............................. .............. 260-0203 [email protected]

Ror O. mir Ltgator .............................. .............. 260-5719 [email protected]

miss d. mouon tnnison Ltgator ............................... .............. 260-9471 [email protected]

arno (arni) h. Oyn Solctor .............................. .............. 260-0249 [email protected] e. Qusn Solctor .............................. .............. 260-0262 [email protected]

Jff e. Sr Ltgator ............................... .............. 260-0176 [email protected]

dvi h. Srn Ltgator/Solctor .............................. .............. 260-0259 [email protected]

Jon K. tyor Solctor .............................. .............. 260-0386 [email protected]

Ror d. Woo Ltgator ............................... .............. 260-0125 [email protected]

If you would like any further information on any members of our team, such as a more detailed resume, please feel free to contactthe team member or the writer directly. You may also refer to our website at www.bdplaw.com.


12/12

Burnet, Duckworth & Palmer llP Law Firm1400, 350-7th Avenue SW Calgary, Alberta Canada T2P 3N9

Phone: (403) 260-0100 Fax: (403) 260-0332www.bdplaw.com

.bdp.

Fro Groun U,Editors-in-Chief

Dad H. Strad, [email protected]...................(403)260-0259

Arold (Ar) H. Olya, [email protected] ......(403)260-0249Joh K. Taylor, [email protected] .......................(403)260-0386

Fro Groun U,Managing Editor

Rhoda Wshart, [email protected] ............. (403)260-0268

Conriuing Wrirs:

Joh K. Taylor, Arold (Ar) H. Olya, Rchard F. Stl,Ssa J. Marty ad Smo J. L.

For a complete list of authorities used in drafting thesearticles please contact the Managing Editor.

ConcFor addtoal cops, addrss chags, or to sggst artcls for ftrcosdrato, plas cotact or Cathr Ltch or MarktgDpartmt at (403) 260-0345 or at [email protected].

Gnr NoicOn Rcor s pblshd by BD&P to prod or clts wth tmlyformato as a al-addd src. Th artcls cotad hr sholdot b cosdrd as lgal adc d to thr gral atr. Plascotact th athors, or othr mmbrs of or costrco tam drctlyfor mor dtald formato or spcfc profssoal adc.

FROm the GROUNd Up AnD OTHeR iSSueS OF ON ReCORd ARe AvAiLABLe On OuR WeB SiTeWWW.bdplaW.COm

bdp construction nl march 2007

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