The Generals - Fall/Winter 2017 - 23

report is "very comprehensive" and a recommended read for all in our industry who work
with the liens.
The new Construction Act is the first major
overhaul since 1980. This is significant as the
current Construction Lien Act is well understood by those in our industry who work with
it as a regular part of their business. The new
Construction Act is a big change and will require
a lot of education to be able to operate within
it properly. While there are many changes to
the new Construction Act, including revised
definitions, the lien period extending from 45
to 60 days and more, there are two significant
changes that are worth noting: Prompt Payment
and Adjudication.
The research done for the Striking the
Balance Report informs us that Canada is
behind the times on a couple of large issues,
including Prompt Payment and Adjudication.
Prompt Payment has been included in the new
Construction Act (taking some of the work from
Bill 69) and now prescribes payment time lines
throughout the supply chain from Owner down
to supplier. This will ensure the timely flow of
funds for all involved in a project, including the
ability to withhold payments for valid reasons
and a dispute mechanism (Adjudication) if

We


there is disagreement. However, Adjudication
is something new altogether.
Adjudication has been working well in many
of the countries researched for the Striking the
Balance report including the U.K., New Zealand,
Ireland, Singapore, Malaysia, Hong Kong and
Australia for many years. With Adjudication
now part of the new Construction Act, it provides the parties to a construction contract the
opportunity to bring a dispute between them to
a quick resolution, including non-payment. This
significantly reduces the need for putting a lien
on a project and the long and expensive process of resolution. The research from the noted
countries shows that having an Adjudication
mechanism in place forces contracting parties to deal with their disputes as they happen
instead of letting them sit, to be resolved at the
end of the project. Adjudication is an important
part of Bill 142 and it will take some time for
the industry to fully understand how it works.
In preparing their report, Reynolds and Vogel
not only worked with 30 industry stakeholders,
they formed an Advisory Committee made up of
very experienced lawyers in lien law from private
practise, major owners who procure significant
construction annually, and the Surety industry.
This group reviewed, challenged and worked

through the material used for the report with
Reynolds and Vogel. One of the unique aspects
of Bill 142 was the Government's approach
to writing it. Due to the complexity of the
Construction Lien Act and the recommendations made in the report, the drafters requested
input from the Advisory Committee during the
Bill's drafting to ensure they understood the
concepts thoroughly. This, apparently, is not
the normal process but shows how committed
the Government is to get the modernization as
right as possible out of the gate.
As is normal process following a first reading
of any new Bill, industry stakeholder comments
will be received by a Standing Committee
before it can move on. It is at this stage that
a Bill is often amended by the comments
received. For Bill 142, this will take place in
the fall of 2017. This is an important part of
any new Bill being proposed, as Bill 69 showed
us. The chance to modernize an existing Act
does not happen often and in Ontario, it has
been 37 years since the Construction Lien
Act was last updated. It is important that our
industry, at all levels, become informed and
involved so we can contribute to the new Act
as it will be at least another 30 to 40 years
until it happens again.
■

represent

construction companiesownersCPFInsurers/Sureties
HCEKPIPerformance and L&M Bond Claimsconstruction
lienscontractual claims and disputesoccupational/
safety inquestsCPFQVJGTcomplex construction litigation

advise

We



 VJGEQPUVTWEVKQPKPFWUVT[QPinsurance coverage
opinionscontract claims liens and defences
 Fidelity/Dishonesty BondsCPFproposed business
practices

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litigate

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related actionsclass actionsCPFprivate actions

agmlawyers.com
thelitigator.ca

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Fall/Winter 201712/30/15

23

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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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https://www.nxtbook.com/naylor/OGAB/OGAB0118
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