Residential construction has been undergoing a profound transformation for several years. The spectacular increase in the amounts invested, the increasing complexity of projects and the cumbersome regulations have profoundly changed the profile of the disputes faced by owners. Where construction conflicts used to be one-off, they are now structural, frequent, and often costly.

The recent figures speak for themselves. Today, Quebec’s residential sector represents tens of billions of dollars in annual investments, largely concentrated in the metropolitan area. This economic reality is automatically accompanied by an increase in legal risks: non-performance, delays, cost overruns, post-delivery problems and warranty disputes.

In this context, the role of the civil litigation lawyer is no longer marginal. It became a key player in the protection of landlords, long before the conflict reached the courts.

Explosion of investments and increased complexity of residential projects

In 2024, residential construction spending in Quebec reached about $36.6 billion, up 14.8% compared to the previous year. Nearly 48% of this spending is concentrated in the Montreal, Montérégie and Laurentides regions, which places Greater Montreal at the heart of the residential boom… and the resulting disputes.

The number of housing starts illustrates the same trend. In Greater Montreal, approximately 16,400 residential units were started in 2024, an increase of about 19% compared to 2023. However, this growth has been accompanied by a massive shift towards the rental housing, which now accounts for 81% of new units. These projects, often large-scale, involve multiple parties and complex contracts, which increases the risk of legal conflicts. A A civil litigation lawyer can be of great help.

Risk factors specific to the Montréal context

In Montreal, certain factors particularly aggravate the risk of construction disputes. The administrative burden is a striking example. The average time to obtain a building permit on the island has increased from about 180 days in 2019 to nearly 291 days, leading to construction delays, delivery delays and cost overruns. Added to this are the pressure on the workforce, sometimes unstable supply chains and the multiplication of technical standards. For homeowners, these realities translate into longer, more expensive and legally more vulnerable projects.

The most frequent construction disputes

The Quebec civil courts see a wide variety of disputes related to residential construction. Some come back on a recurring basis and directly affect individuals.

Main Types of Residential Construction Disputes

Type of dispute

Observed frequency

Legal issues

Financial impact

Failure to perform

Very high

Non-conformity, technical evidence

High

Delivery delays

High

Contractual clauses, penalties

Medium to High

Cost overruns

High

Interpretation of the contract

High

Infiltration and envelope problems

High

Legal warranty, defects

Very high

Cracks and structural problems

Average

Heavy expertise

Very high

These disputes often result in contractual or civil liability claims, sometimes intertwined with issues of latent defects or legal warranty of quality.

Guarantees: useful but often insufficient protection

The Residential Construction Guarantee (GCR) plan covers several types of new residential buildings and processes thousands of claims each year related to the quality of the work and the conformity of the buildings. It is an important protection for consumers.

However, in practice, the warranty does not solve everything. Many cases ended in Civil Litigation when the owner contests the administrator’s decision, believes that the compensation is insufficient or wishes to sue the contractor directly for more extensive damages. It is at this stage that the legal analysis becomes decisive.

Construction disputes require a detailed understanding of the deadlines, the remedies available and the interactions between the different applicable legal regimes.

Why the intervention of a lawyer is strategic

A residential construction case rarely involves a single legal issue. It often involves both a contract for work, the legal guarantee of quality, a guarantee plan such as the RCM, insurance and municipal rules. Identifying the right legal basis, the right defendant, and the right time to act is essential.

The civil lawyer intervenes at several levels: analysis and securing of the contract before signing, supervision of formal notices during the construction site, negotiation of corrective measures, and, when necessary, preparation of a legal recourse. In some cases, The use of mediation allows the conflict to be resolved more quickly than a trial, provided that the strategy is solidly prepared.

Frequently Asked Questions – Residential Construction Litigation in Montreal

Why are construction disputes on the rise in Quebec?

The increase in investments, which reached approximately $36.6 billion in 2024, combined with the concentration of projects in Greater Montréal, is automatically leading to an increase in conflicts related to defects, delays and cost overruns.
Sources
https://statistique.quebec.ca/fr/produit/publication/depenses-construction-residentielle-2024
https://observatoire.cmm.qc.ca/wp-content/uploads/2025/05/20250507noteMisesenchantier.pdf

Is Greater Montréal more affected than other regions?

yes. Nearly 48% of residential construction spending is concentrated in the Montréal, Montérégie and Laurentides regions, making Greater Montréal the main focus of residential disputes.
Spring
https://statistique.quebec.ca/fr/produit/publication/depenses-construction-residentielle-2024

What types of projects generate the most disputes?

Large-scale rental projects, which represent about 81% of new units in 2024 in Greater Montreal, are particularly complex and exposed to conflicts between developers, contractors, condominiums and buyers.
Sources
https://observatoire.cmm.qc.ca/wp-content/uploads/2025/05/20250507noteMisesenchantier.pdf
https://www.cmhc-schl.gc.ca/observateur-logement/2024/mises-chantier-dans-grandes-villes-tendances-divergentes

Are guarantees such as the GCR sufficient to settle disputes?

Not always. While the RCM processes thousands of claims each year, many cases continue before the courts when decisions are contested or the amounts claimed exceed the coverage.
Spring
https://www.garantiegcr.com/app/uploads/2025/05/01-gcr-rag-2024-vf-web.pdf

Why consult a lawyer at the first signs of conflict?

Because a construction dispute often involves several legal regimes and high amounts. Early intervention helps secure evidence, meet deadlines, and choose the most effective strategy.
Sources
https://www.garantiegcr.com/app/uploads/2025/05/01-gcr-rag-2024-vf-web.pdf
https://statistique.quebec.ca/fr/produit/publication/depenses-construction-residentielle-2024

Contact us

Compagnie abg conseils juridiques assists real estate owners and buyers in Montreal in the management of construction disputes. We analyze situations of poor workmanship, delays or contractual conflicts, evaluate possible recourses and intervene quickly to protect your rights and defend your interests, in negotiation and before the courts.

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