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Bill 142 and Construction Lien Act amendments

October 10, 2017

On May 31, Bill 142, the Construction Lien Act Amendment Act, 2017, was introduced in the Ontario Legislature by the Attorney General. It is expected to be passed into law in the first quarter of 2018.

This represents a sea change in construction law in Ontario and Gowling WLG is here to assist you with the transition to the new construction regime. With Bill 142 comes a mandatory prompt payment regime, adjudication of construction disputes, changes in lien rights and time periods, changes in construction litigation processes and much more.

What you need to know

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
  • 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

Bill 142 passed First Reading in the Ontario Legislature on May 31, 2017. Second Reading will occur in the Fall of 2017. The Attorney General is hoping Third Reading and enactment to occur in winter of 2018. However, the in force date of some parts of the Bill may occur later after regulations are adopted.

Resources

On-demand video seminar

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Watch the on-demand videos from our June 21 seminar in Toronto by clicking here or the individual links below:

CPD Credits:

This seminar counts for up to one (1) hour of substantive credit toward the LSUC's mandatory CPD requirements. 

Upcoming events

Past events

We have already hosted several events regarding Bill 142. Please feel free to contact us about any of these or for copies of related materials.

  • Adjudication 101: Workshop on new adjudication rules in Bill 142
    • Toronto – September 18, 2017
  • It’s here! Bill 142: The New Construction Lien Act
    • View the on-demand videos from our Toronto session above
    • Toronto – June 21, 2017
    • Ottawa – June 28, 2017
    • Kitchener-Waterloo – July 12, 2017
    • Hamilton/Burlington – July 13, 2017
  • It’s coming! Reform of the Construction Lien Act
    • Toronto – November 1, 2016
    • Ottawa – November 23, 2016
    • Kitchener-Waterloo – December 7, 2016

Stay updated

Check back here, or sign up to our Infrastructure & Construction Group mailing list for notices of the following articles:

  • Claims Procedures
  • Liens, Holdbacks and Other Changes
  • Technical Amendments
  • Adjudication
  • Impact of Bill 142 on Real Estate

Where can I get a copy of the new Act?

  • You can view a copy of Bill 142 here, and a PDF version here.
  • If you would like a consolidated copy of the new Construction Lien Act (which will be renamed the Construction Act), please let us know and we can send you a copy.

Please do not hesitate to contact anyone in the Gowling WLG Infrastructure & Construction Group if you have any questions or would like to know more about the Construction Lien Act amendments. We would be more than happy to assist.

Edward (Ted) G. Betts

Partner, Head of Infrastructure & Construction Group


NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

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