The Generals - Fall/Winter 2017 - 28

undertaking to refer the matter to adjudication
within two weeks of that notice.
And that brings us to that critical third leg
in the stool: Interim Adjudication as set out in
Part II.1 which allows any party to a contract
or subcontract to refer a disputed matter to a
fast-tracked adjudication process. More importantly, it calls for the adjudicator's decision to
be binding on the parties "until a determination
of the matter by a court or any determination of
the matter by way of an arbitration conducted
under the Arbitration Act, 1991."

The adjudication piece is probably the most
controversial component of the entire bill and
sets it aside from similar legislation in the
United States. While several stakeholders have
voiced opposition to interim binding adjudication, SAC fully supports its inclusion in the bill
and surety firms have agreed themselves to
be bound by an adjudicator's determination
on surety matters.
This tight timeframe imposed under Section 13
is intended to force the issue and prevent any
end-runs around the prompt payment provisions

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28

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01/08/16

View this issue online at www.naylornetwork.com/oga-nxt

in Section 6. At a CDAO event in October, the
authors of the Review Report defended the necessity of binding adjudication as a disincentive to
those who might engage in any creative footdragging and exploit possible loopholes in the
payment deadlines. In the words of one of the
panelists: "Knowing that you're going to hang
at dawn tomorrow, brings remarkable clarity to
the mind."
We obviously have a great deal to say
about the surety provisions of Bill 142; actually, too much to say in such a small space.
With the indulgence and permission of the
OGCA, we'll provide a follow up article that
details the role of bonds in bringing stability
to the public construction process and ensuring that monies flow down the construction
payment chain.
For the moment, suffice it to say that surety
bonds are and should be a critical element
of any comprehensive effort to bring timeliness and certainty to the construction payment process. A recently completed study by
the Canadian Centre for Economic Analysis
(CANCEA) has found that bonds make a
valuable contribution, not just to furthering
the objectives of the new Construction Act,
but to the overall economy of the province
of Ontario.
Consider that in Ontario, an unbonded contractor is ten times more likely to become insolvent than a bonded contractor (The Economic
Value of Surety Bonds in Ontario; CANCEA, July
2017). Consider as well that among all the payment remedies provided for in Bill 142, a surety
bond is the only remedy that directly puts money
5:38 pm into the hands of unpaid subcontractors and
suppliers. More to come on that.
It's not done yet. As of this writing, the
Attorney General is seeking additional feedback
and suggestions for improvements as the bill
moves toward second reading and committee
hearings in the fall. Indeed, like any other complex piece of legislation, there are areas which
will need some tinkering and adjustments before
the bill is tabled for third reading.
While there are never any magic lamp solutions, Bill 142 offers the long overdue promise
of an improved payment protocol for the Ontario
construction industry. There will undoubtedly
be hiccups and growing pains as the industry
adjusts to the new regimen, but once the fine
tuning is done and the kinks are worked out,
the changes should benefit all construction
stakeholders.
We look forward to better times ahead. ■

12/08/16 2:44 AM


http://www.clac.ca http://www.cooperequipment.ca http://www.naylornetwork.com/oga-nxt

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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