On May 31, an Act to amend the Construction Lien Act, Bill 142, 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