Court Of Appeal Favours Function Over Form For Construction Act Transition Provisions

In Dalren Limited v Loadstar Trailers Inc, 2026 ONCA 500, the Court of Appeal for Ontario addressed the Construction Act’s transition provision for determining which version of the statutory regime applies to a project. The determinant is when a procurement process for “the improvement” was commenced “by the owner of the premises”. Based on a functional reading, the Court of Appeal held that a procurement process may trigger the provision despite the proponent not then owning the premises, and even if the premises for the project is later changed.

Background

Loadstar Trailers Inc. and a subsidiary (together, “Loadstar”) invited Dalren Limited (“Dalren”) to submit a proposal to construct a trailer manufacturing facility. On December 11, 2017, Dalren submitted a preliminary proposal to build the facility at a premises referred to as “Thompson Street”. A drawn-out negotiation process led to the contract being executed three years later. By that time, the project location had changed to