The Construction Act

On Dec. 12, 2017, Bill 142, the Construction Lien Act Amendment Act, 2017, is NOW LAW, changing the Construction Lien Act to the Construction Act.

These changes will have a profound impact on every part of the construction industry. From liens to holdbacks, to payment timing, to dispute resolution, the new Act will alter all of them dramatically. So much so that the amendments virtually create a new Act. In fact, Bill 142 will change even the name of the Construction Lien Act to the Construction Act.

CURRENT STATUS OF

THE CONSTRUCTION ACT

Oct. 1, 2019: Prompt payment, adjudication rules and
no more liens on municipalities to come into force

July 1, 2018: “Modernization” amendments to come into force

Impacts of these amendments

The amendments are sweeping and will impact all construction work and projects in Ontario, including P3/infrastructure, energy, mining and real estate developments. Other provinces are looking very closely at these amendments, especially prompt payment and adjudication.

For the first time since 1983, the Construction Lien Act Amendment Act (which will be renamed the Construction Act) is set to undergo many fundamental changes. These include:

• Modernization of the construction lien and holdback rules and timelines
• Modernization of claims procedures
• Introduction of a prompt payment regime for all construction projects
• Implementation of adjudication as a new process to speed up dispute resolution