Ontario Bill 142

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, 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.

When are the amendments in force?

Some minor and translation changes became effective immediately, but the balance of the changes will be proclaimed and in force very soon: most of the changes will come into force on July 1, 2018, and the prompt payment and adjudication changes will come into force on October 1, 2019.

What do I need to know?

Our Construction Group has been leading the industry in preparing for the changes coming with Bill 142. We have published many articles, held many seminars, and have many more planned. 

  • View past Building Brief articles
  • View past seminars, including some videos
  • For coming events and seminars, visit our seminars & events page. Coming events include:
    • Our Spring Construction Law Forum: Update on Bill 142 May 30, 2018 (Toronto)
    • Our "Impact of Bill 142" series:
      • Real Estate and Development - May 17, 2018 (Toronto)
      • Impact of Bill 142 on Municipalities and the Public Sector - May 22, 2018 (Toronto)
      • Impact of Bill 142 on P3/Infrastructure - May 24, 2018 (Toronto)
      • Impact of Bill 142 on Lenders - date to be confirmed.
    • Adjudication 101: Workshop on the new adjudication rules under the Construction Act - date to be confirmed.

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
  • In our Building Brief article published on April 3, 2018, "New Construction Act takes effect," we summarize the key changes that you need to know.

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.