On Dec 12, 2017, Bill 142, the Construction Lien Act Amendment Act, 2017, received Royal Assent and is now law. However, the major changes to Ontario construction laws that are introduced by Bill 142 will not come into force until proclaimed later in 2018.
The amendments bring significant 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 now impacts on lenders and landlords and much more.
When are the amendments in force?
We now have some better clarity on the timelines for proclamation of the Construction Lien Act Amendment Act, 2017 (Ontario):
- Royal Assent was received on December 12, 2017. Only some minor amendments and French language updates came into force immediately, and the balance of the Act will come into force on proclamation.
- Proclamation will come in at least 2 stages as Regulations are developed.
- Regulations are expected to be published for public consultation and feedback in February 2018.
- The changes to the lien and holdback process will take effect first before the prompt payment rules and the new adjudication process.
- In January, the Attorney General will provide information on a timeline for implementation of the Authorized Nominating Authority, which is needed before the prompt payment and adjudication rules can take effect.
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 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
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.
On-demand video seminar
Watch the on-demand videos from our June 21 seminar in Toronto here.
This seminar counts for up to one (1) hour of substantive credit toward the LSUC's mandatory CPD requirements.
Event dates to be confirmed.
- Update on the Construction Lien Amendment Act
- Impact of Bill 142 on Lenders
- Impact of Bill 142 on P3/Infrastructure
- Adjudication 101: Workshop on the new adjudication rules under the Construction Act
- Impact of Bill 142 on Real Estate Development
- Impact of Bill 142 on Municipalities and the Public Sector
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
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
- 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 online here
- If you would like a consolidated copy of the new Construction Lien Act (which will be renamed the Construction Act), or a copy of our table tracking the in force timelines of the amendments, 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