How are construction defect damages measured in Canada?
The usual measure is the reasonable cost of repair to put the building in the condition it should have been. Where repair would be grossly disproportionate to the benefit, courts instead award the diminution in the property's value. Investigation costs and consequential damage are typically recoverable.
What is the limitation period for a construction defect claim?
In Ontario the basic limitation period is generally two years from discoverability, with an ultimate limitation period of 15 years under the Limitations Act. Latent (hidden) defects run from when the defect was or ought reasonably to have been discovered, which can be years after completion.
Can I claim for consequential damage caused by a defect?
Yes. If a defect causes further damage — for example, a defective envelope causing water intrusion and mould — the cost to repair that consequential damage is generally recoverable in addition to fixing the original defect, subject to proof and mitigation.
What is 'betterment' in a defect claim?
Betterment is an improvement you receive when a defect is repaired with newer or better materials than the original. Courts may deduct betterment from the award so you are not put in a better position than you bargained for, though tribunals apply this cautiously.