Document background
The Tri Party Agreement (Construction) is a specialized legal instrument used in Canadian construction projects where three distinct parties need to establish their mutual rights, obligations, and relationships. This agreement type is commonly employed when a project involves an owner, contractor, and either a lender, construction manager, or other key third party. It's particularly relevant in complex construction projects where traditional bilateral agreements are insufficient to address the intricate relationships and responsibilities between all parties. The agreement must comply with Canadian federal and provincial construction laws, including specific requirements for statutory holdbacks, lien rights, and building codes. It typically includes detailed provisions for payment mechanisms, project oversight, quality control, risk allocation, and dispute resolution, while addressing specific Canadian legal and regulatory requirements.
