The Generals - Fall/Winter 2017 - 27

do little to improve the construction payment
logjams. The new measure needed to have
the teeth to bring about the required (and
needed) change in behaviour.
* Fair/Equitable: How to navigate a minefield of conflicting interests and ensure
that the measures are applied across the
board so that no sector of the industry is
unfairly burdened with inappropriate risk
or responsibilities. SAC's message to the
Attorney General on prompt payment was

simple and direct: Fix the problem! Don't
just redistribute the grief that results from
NOT fixing the problem.
The fix is found in Sections 6.3 and 6.4 which
sets out payment deadlines and protocols for
payors and payees. General contractors are
required to pay subcontractors within seven
days of receiving payment from an owner.
However, 6.4 (5) allows for pay-when-paid with
the proviso that the general must provide a formal notice to the unpaid sub which includes an

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INE
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t long last. Bill 142 was introduced for
first reading in the Ontario Legislative
Assembly on May 31st. It was more
than four years in the making, but
all things considered, it was well worth the wait.
It was May 2013, when its ill-fated predecessor Bill 69, was tabled as a Private Member's
Bill with the intention of bringing prompt payment to Ontario's construction industry. But the
bill was poorly conceived and the timing was
all wrong. After a false start and a provincial
election, the government, armed with a new
majority mandate, abandoned the measure and
pledged to completely overhaul and modernize
the moribund Construction Lien Act which had
been in force since 1983.
And Bill 142 does just that. Following what
was possibly the most extensive stakeholder
consultation process to ever inform a legislative
initiative, the Reynolds/Vogel Review published
a comprehensive 435-page report, containing
100 recommendations, entitled Striking the
Balance. The document lived up to its name,
proposing an elegantly integrated system of
payment assurance/enforcement that is as
innovative as it is fair and equitable. Bill 142
is the embodiment of those recommendations.
I won't waste time and ink by reciting a
clause by clause analysis of the new measure.
By now, most are familiar with the specifics,
or can get a much more insightful overview
from other sources. Instead, I offer the perspective of the Surety Association of Canada
(SAC) on a few of the marquee features; their
value to, and potential impact on the Ontario
construction economy.
Of core interest to the surety industry is the
new regime around prompt payment in Part I.1
As the stakeholder group charged with resurrecting failed projects and compensating unpaid
subcontractors and suppliers, sureties have a
front row seat to the financial upheaval and
displacement that can result when monies stop
flowing down the construction payment chain.
For years we would watch in frustration at
what seemed to be a culture of non-compliance;
where construction payors and even payees had
come to simply accept the reality of payments
delayed 60 or 90 days beyond the terms in
the contract.
A workable legislative solution to the prompt
payment predicament would have to be:
* Enforceable: While other jurisdictions (e.g.
several U.S. states) have such laws on the
books, these are, in effect, paper tigers that

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Fall/Winter 2017

27

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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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