Market Intelligence

A recent Alberta Court of King's Bench decision clarifies that the two-year trial deadline under section 46(2) of the Prompt Payment and Construction Lien Act does not apply when a construction...

Many professionals (accountants, engineers, lawyers, dentists and other health professionals) operate through professional corporations believing this structure protects their personal assets from business liabilities. A recent Alberta Court of King's Bench decision serves as a reminder that this assumption can be wrong, and costly.

Starting in 2027, all Ontario project owners with contracts entered into on or after January 1, 2026, and most owners with contracts dating back to July 1, 2018, must start releasing statutory holdback to their contractors on an annual basis. This requirement is the latest in a series of construction payment reforms under Ontario’s Construction Act. It replaces the traditional model of retaining holdback until substantial performance. Owners and contractors who fail to comply with the notice and payment timelines face exposure to interest claims, payment disputes, and adjudication proceedings.

Ontario landlords and property owners face significant legal exposure when outsourcing winter maintenance to contractors. Recent caselaw reveals that hiring a snow removal contractor does not eliminate liability under the Occupiers' Liability Act, and courts now require active monitoring, structured inspection protocols, and documented oversight to successfully defend against slip-and-fall claims arising from icy conditions.

The Court of Appeal for Ontario has resolved a critical uncertainty in construction law regarding how holdback deficiencies should be calculated when owners fail to retain statutory holdbacks. The decision addresses whether contractors who have already been paid can claim additional priority over construction mortgages, and establishes important boundaries to prevent double recovery while balancing the interests of all parties in the construction pyramid.

Infrastructure disputes in Canada are increasingly resolved during project timelines rather than after completion, driven by complex dispute resolution mechanisms and prompt payment legislation.