What you need to know
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.
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
Where can I get a copy of the new Act?
You can view a copy of Bill 142 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 Construction & Engineering 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.