Ontario Construction Act S. 87.3 Transition Provisions In Review

On May 6, 2021, the Ontario Superior Court of Justice released its first decision focused on the section 87.3 transition provisions of the Construction Act (the "Act"). The main takeaway from the decision is that the relevant date to trigger section 87.3 is the date of the "prime" contract between owner and contractor-not the date of any given subcontract. This is an important point. On any given construction project in Ontario, the transition provisions determine whether lien claimants benefit from the new Act or continue to be governed by the old Construction Lien Act (the "CLA").

In Crosslinx Transit Solutions Constructors v. Form & Build Supply (Toronto) Inc., 2021 ONSC 3396 [Form & Build], the court interprets the form and substance of the Act's transition provisions. Form & Build affirms that the "contract" referred to in section 87.3 is the prime contract, not the date of a subcontract. The decision also provides a guideline for those navigating