The Generals - Fall/Winter 2017 - 19

FEATURE

F
The New
Construction
Act:
Coming to
a Jobsite
Near You
By Glenn Ackerley, WeirFoulds

or many years, construction industry groups have been
demanding changes in the law about payment on construction projects and how disputes are resolved. In response,
the Attorney-General has now introduced Bill 142, An Act to
Amend the Construction Lien Act, for first reading. If Bill 142 gets
passed into law later this year, as expected, then the way contractors
get paid for their work will change drastically in Ontario and anyone
involved in the construction industry will be significantly affected.
Bill 142 is the result of a two-year industry consultation process. An
expert review panel, made up of lawyers Bruce Reynolds and Sharon
Vogel, listened to the concerns of industry leaders and stakeholders
over how the current system is broken and heard suggestions about
how to fix it. With those submissions in mind, and with additional
input from an experienced advisory group, the experts prepared a
400-page report for the government entitled "Striking the Balance."
In that report, they made 101 recommendations for improvements
to payment rules, payment security, and resolving payment disputes
on construction projects. The government's proposed legislation
introduced last week implements almost every recommendation
made by the experts.
Under the newly re-named Construction Act, the key proposed
changes fall into three broad categories:

1. Prompt Payment of Invoices

Project owners will have to pay contractors within 28 days after
receiving a proper invoice, and contractors will then have 7 days to
pay their subcontractors. If a payer doesn't agree with all or part of
the invoiced amount, a payer must give a notice of non-payment
together with an explanation for the non-payment. The undisputed
amount must still be paid according to these mandatory timelines.

2. Timely Adjudication of Disputes

The new Act will create an interim dispute adjudication process
to resolve payment disputes on construction projects as they arise.
A qualified adjudicator appointed by the parties will determine a
dispute, such as a dispute over the amount of an invoice, and the
adjudicator's ruling will generally be issued within a month. Until the
end of the project, the parties are bound to act in accordance with
the adjudicator's decision, and if payments aren't made as ordered,
contractors can stop work on the project until they are.

3. Modernization of the Construction Lien Act

A large number of changes are proposed to modernize many
aspects of the current 35-year old Construction Lien Act and bring
it in line with the industry's needs in the 21st century. These include:
* extending the lien period from 45 days to 60 days
* making the release of holdback funds mandatory
* enhancing the rules about handling trust funds
* changing the formula for substantial performance of the contract
* permitting phased projects
* recognizing the unique nature of public-private partnership projects
* requiring surety bonds on public projects
Bill 142 is critical reading for everyone involved in construction and
can be found at: http://www.ontla.on.ca/web/bills/bills_detail.do?
locale=en&Intranet=&BillID=4957
■
Fall/Winter 2017

19


http://www.ontla.on.ca/web/bills/bills_detail.do

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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