New legal rights and obligations for parties involved in construction projects in Ontario.

On October 1, 2019 amendments to Ontario’s Construction Act will take effect and will create a series of new legal rights and obligations for parties involved in construction projects in Ontario.

Chief among these amendments is the creation of a prompt payment regime which requires owners to pay general contractors within 28 days of receipt of a proper invoice, and which further requires payments between general contractors, subcontractors, and sub-subcontractors to be made within seven days of receipt of payment. The amendments also create a mandatory dispute adjudication process allowing parties to refer certain course of construction disputes to an adjudicator empowered to make an interim determination which is binding on the parties unless the dispute is otherwise determined by a court, arbitrator, or by an agreement between the parties.

Parties involved in construction project’s in Ontario should ensure they are aware of these amendments and how they may impact their business operations.