On May 31, Bill 142, the Construction Lien Amendment Act, 2017, was introduced in the Ontario Legislature by the Attorney General. It is expected to be passed into law in the first quarter of 2018.

This represents a sea change in construction law in Ontario and Gowling WLG is here to assist you with the transition to the new construction regime. With Bill 142 comes a mandatory prompt payment regime, adjudication of construction disputes, changes in lien rights and time periods, changes in construction litigation processes and much more.

What you need to know

The amendments are wide sweeping and will impact all construction work and projects in Ontario, including P3/infrastructure, energy, mining and real estate developments. Other provinces are looking very closely at these amendments, especially prompt payment and adjudication.

For the first time since 1983, the Construction Lien Act (which will be renamed the Construction Act) is set to undergo many fundamental changes. These include:

  • Modernization of the construction lien and holdback rules
  • Modernization of claims procedures
  • Introduction of a prompt payment regime for all construction improvements
  • Implementation of adjudication as a new process to speed up dispute resolution

Resources

Upcoming events

To keep you updated

Check back here, or sign up to our Infrastructure & Construction Group mailing list for notices of the following articles:

  • Claims Procedures
  • Liens, Holdbacks and Other Changes
  • Technical Amendments
  • Adjudication
  • Impact of Bill 142 on P3 Projects
  • Impact of Bill 142 on Project Finance
  • Impact of Bill 142 on Real Estate

Where can I get a copy of the new Act?

  • You can view a copy of Bill 142 here, and a PDF version here.
  • If you would like a consolidated copy of the new Construction Lien Act (which will be renamed the Construction Act), please let us know and we can send you a copy.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.