The Generals - Fall/Winter 2017 - 17

THE CONSTRUCTION
LIEN ACT DISCUSSION
By The Honourable Yasir Naqvi, Attorney General of Ontario

T

he construction industry is a critical and
driving force of Ontario's economy. Your
industry employs more than 400,000
people and makes up 7 percent of the
province's GDP. I know how important it is to
the entire province that your sector continues
to grow and thrive as times change. Right now,
the government of Ontario is making the largest infrastructure investment in the province's
history. We are building hospitals, schools,
public transit, roads and bridges-more than
$190 billion over 13 years.
Those investments do not build themselves.
You do.
As a government, we need to make sure
that our laws keep pace with these changes by
supporting and not hindering your industry's
growth. That is why our government has been
working incredibly hard to make sure this critically important industry has the tools it needs
to continue to prosper.
You told us about the problems your industry
was facing, like the unequal bargaining power
between some parties to construction contracts, or workers not being paid for months
of work. And we knew that a drastic change
was needed to modernize the sector and
make sure that our government supports you.
We also knew that a change as large as this
would require extensive work, not only creating legislation, but working closely with you to
understand all of the needs and concerns that
had to be addressed.
That's why two years ago, we asked Bruce
Reynolds and Sharon Vogel from Borden Ladner
Gervais to review the province's construction
legislation and give us advice on how to
improve the industry's payment system and
bring the law up to date. After extensive
research and consultation with over 60
stakeholder groups, Mr. Reynolds and
Ms. Vogel landed on a plan for a way
forward. During the fall of 2016,
I met with 30 groups myself to

hear the industry's feedback on the recommendations in their report.
We needed to go through this process because
we wanted to know all of your concerns. We have
continued to work with Mr. Reynolds, Ms. Vogel
and their expert advisory group of industry professionals to make sure the changes are practical,
workable and most importantly, address your
needs. It was a priority for me to make sure this
legislation is written not just for you, but with you.
But what does that mean exactly?
The new Construction Act would help foster an
innovative and dynamic business environment in
the construction industry. First, we are proposing
to create a new adjudication process to make it
easier for people to resolve disputes outside of
court. We want to help contractors and subcontractors save time and money by allowing more
time to resolve disputes, and prevent disputes
from delaying work on construction projects. To
do that, we have also proposed to extend the
timelines to file liens and start court actions
from 90 days to 150 days.
At the same time, we are introducing new
rules around prompt payment to give contractors and subcontractors certainty about when
to expect payment. As many of you know too
well, late payment is one of the most urgent and
pressing issues facing the industry today. When
a company does not get paid for its work, it sets
off a chain reaction that delays the payments it
owes to everyone who has worked on the project.
These situations are devastating for workers, for
businesses and for communities and the public.
It seems obvious to say that people should be
paid on time for the work they do, and yet it was
not a guarantee under the old rules.
Finally, we are proposing amendments to
bring the lien and holdback rules up to date to
reflect current industry practices. These include
requiring holdback funds to be paid out as soon
as the deadline to file liens has passed, which
would allow contractors and subcontractors to
know when to expect full payment for their work.

The new Construction Act will set timelines
to give contractors and subcontractors certainty about when to expect payment. This is the
major reason why I committed to introducing this
legislation. This will make it easier for contractors and suppliers to run their business, make
more competitive bids, and meet their financial
responsibilities on time.
In addition, through my meetings with groups
and individuals in your industry, I learned that it
was not uncommon for disputes to take years
to resolve. This is why we are proposing a new
adjudication process to speed up dispute
resolution. Adjudications would be informal
and inquisitorial, and adjudicators would be
experts in the construction industry and have
experience or training in dispute resolution.
Lengthy disputes can not only delay work, but
also delay payments on construction projects.
Under the new process, while parties are awaiting a decision in court, they would have the
option to receive an interim decision on the
matter. This decision would now be binding until
a court decision is reached, or the parties agree
between themselves to treat the adjudicator's
decision as final.
These are just a few of the proposed changes
to the Construction Lien Act that would have a
drastic impact on the industry.
Overall, if these reforms are passed, they will
be the biggest changes to Ontario's construction
industry in over 30 years. The rules would reflect
the current needs of the industry and support the
hundreds of thousands of people who work in it.
I will continue to work with you to ensure our
construction sector remains competitive, prospers, and drives our economy forward. Together,
we have taken the necessary steps to modernize this system. Through extensive stakeholder
consultations and conversations, thorough and
well-researched advice from experts and most
importantly, listening to you, we believe that the
new Construction Act will strike the right balance
to support you the way you support Ontario. ■
Fall/Winter 2017

17



Table of Contents for the Digital Edition of The Generals - Fall/Winter 2017

Chairman’s Message
President’s Message
Incoming Chair’s Message
Government Relations Report
Events
The Construction Lien Act Discussion
The New Construction Act: Coming to a Jobsite Near You
Modernizing the Construction Lien Act – Welcome Changes
Bill 142, Construction Lien Act Amendment – A Construction Owner’s Perspective
Bill 142 – Worth the Wait
Legend: Pertinent Acronyms
The Effect of Adjudication on the Construction and Legal Industries
The Proposed New Construction Act: A Dose of Realism
Employer Did Not Discriminate Against Cocaine Addict Who was Dismissed for Cause
COR Safety Certification: It’s Not just for Large Generals
Recent Decision Confirms that Notices of Claims Do Not have a “Standard Form”
Maple Reinders: After 50 Years, their Passion for Building Keeps Growing … and Growing
OGCA Golf Tournament
Associate Partners Program
Index to Advertisers
The Generals - Fall/Winter 2017 - Intro
The Generals - Fall/Winter 2017 - cover1
The Generals - Fall/Winter 2017 - cover2
The Generals - Fall/Winter 2017 - 3
The Generals - Fall/Winter 2017 - 4
The Generals - Fall/Winter 2017 - 5
The Generals - Fall/Winter 2017 - 6
The Generals - Fall/Winter 2017 - Chairman’s Message
The Generals - Fall/Winter 2017 - 8
The Generals - Fall/Winter 2017 - President’s Message
The Generals - Fall/Winter 2017 - 10
The Generals - Fall/Winter 2017 - Incoming Chair’s Message
The Generals - Fall/Winter 2017 - 12
The Generals - Fall/Winter 2017 - Government Relations Report
The Generals - Fall/Winter 2017 - 14
The Generals - Fall/Winter 2017 - Events
The Generals - Fall/Winter 2017 - The Construction Lien Act Discussion
The Generals - Fall/Winter 2017 - 17
The Generals - Fall/Winter 2017 - 18
The Generals - Fall/Winter 2017 - The New Construction Act: Coming to a Jobsite Near You
The Generals - Fall/Winter 2017 - Modernizing the Construction Lien Act – Welcome Changes
The Generals - Fall/Winter 2017 - 21
The Generals - Fall/Winter 2017 - 22
The Generals - Fall/Winter 2017 - 23
The Generals - Fall/Winter 2017 - Bill 142, Construction Lien Act Amendment – A Construction Owner’s Perspective
The Generals - Fall/Winter 2017 - 25
The Generals - Fall/Winter 2017 - Bill 142 – Worth the Wait
The Generals - Fall/Winter 2017 - 27
The Generals - Fall/Winter 2017 - 28
The Generals - Fall/Winter 2017 - Legend: Pertinent Acronyms
The Generals - Fall/Winter 2017 - The Effect of Adjudication on the Construction and Legal Industries
The Generals - Fall/Winter 2017 - 31
The Generals - Fall/Winter 2017 - The Proposed New Construction Act: A Dose of Realism
The Generals - Fall/Winter 2017 - 33
The Generals - Fall/Winter 2017 - Employer Did Not Discriminate Against Cocaine Addict Who was Dismissed for Cause
The Generals - Fall/Winter 2017 - 35
The Generals - Fall/Winter 2017 - 36
The Generals - Fall/Winter 2017 - COR Safety Certification: It’s Not just for Large Generals
The Generals - Fall/Winter 2017 - 38
The Generals - Fall/Winter 2017 - 39
The Generals - Fall/Winter 2017 - Recent Decision Confirms that Notices of Claims Do Not have a “Standard Form”
The Generals - Fall/Winter 2017 - 41
The Generals - Fall/Winter 2017 - Maple Reinders: After 50 Years, their Passion for Building Keeps Growing … and Growing
The Generals - Fall/Winter 2017 - 43
The Generals - Fall/Winter 2017 - 44
The Generals - Fall/Winter 2017 - 45
The Generals - Fall/Winter 2017 - OGCA Golf Tournament
The Generals - Fall/Winter 2017 - 47
The Generals - Fall/Winter 2017 - Associate Partners Program
The Generals - Fall/Winter 2017 - 49
The Generals - Fall/Winter 2017 - 50
The Generals - Fall/Winter 2017 - 51
The Generals - Fall/Winter 2017 - 52
The Generals - Fall/Winter 2017 - 53
The Generals - Fall/Winter 2017 - Index to Advertisers
The Generals - Fall/Winter 2017 - cover3
The Generals - Fall/Winter 2017 - cover4
The Generals - Fall/Winter 2017 - outsert1
The Generals - Fall/Winter 2017 - outsert2
The Generals - Fall/Winter 2017 - outsert3
The Generals - Fall/Winter 2017 - outsert4
The Generals - Fall/Winter 2017 - outsert5
The Generals - Fall/Winter 2017 - outsert6
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