The Construction Act

The Construction Lien Act was originally enacted in 1983 providing some measure of protection for companies and individuals supplying labour and materials to construction sites.

The Ontario government brought in transformational changes in December 2017 with Bill 142, the Construction Lien Act Amendment Act, 2017 (Ontario). The most significant changes included the introduction of prompt payment provisions and dispute adjudication which were proclaimed on October 1, 2019.

This 3-hour seminar will provide an overview of the key features/changes of the following categories of rights and obligations that are now and will be under the new Construction Act:

Lien Rights - Holdback:

• What is a construction lien?
• Who can lien?
• Can you lien when doing work for a tenant?
• Can you lien government property?
• How do you register a lien?
• The Basic Holdback
• Why would you lien?
• What can you lien?
• Can you lien a public road or a street?
• What work can you lien for?
• What happens after register your lien?
• Release of Holdback

Trust Obligations:

• What is a trust?
• What obligations are there?
• Personal Liability of Officers, Directors or Controlling Minds
• What is the trust under the Construction Act?
• What funds are subject of the trust?

Prompt Payment:

Ontario's prompt payment provisions came into force on October 1, 2019. The key elements of the new legislation will be outlined including:

• freedom of contract in respect of invoicing terms (so as to permit a variety of mechanisms such as milestone payments, phase payments, etc.);
• a 28-day payment period which runs from the delivery of a proper invoice and a 7-day payment period for payment to sub-contractors;
• certification processes are to take place within the 28-day payment period;
• evaluation of payment applications and delivery of a notice of non-payment; and
• interest charges arising from a failure to pay and a right to suspend arising after the failure to pay an adjudicator's decision

Adjudication:

Ontario's adjudication provisions will apply to contract and subcontracts entered into after October 1, 2019. The key elements of the new legislation will be outlined including:

• targeted interim binding adjudication in relation to a defined set of issues focused on payment disputes;
• available to all participants in the construction pyramid on projects in both the public and private sectors;
• adjudicators will have significant experience in the construction industry;
• there will be a single Authorized Nominating Authority;
• adjudicators will have considerable discretion in setting procedures; and
• the total time frame of an adjudication will be 46 days, unless extensions are agreed to.

• Management
• Owners
• Procurement professionals
• Project Managers
• Supervisors
• Support staff