The respondent contractor successfully tendered for a dredging project using a suction method, but later incurred losses when it could not obtain the necessary permits.
The contractor sued the engineering firm that prepared the tender documents and the conservation authority, alleging negligent misrepresentation for failing to warn about the permit requirements.
The Supreme Court of Canada allowed the appeal, holding that an engineer preparing tender documents owes no duty of care to advise prospective contractors about the need for permits or the viability of their chosen construction methods.
