A Primer On The Recent Amendments To Ontario's Construction Act

With significant amendments to the Construction Act having come into force on October 1, 2019, it is critical for all members of the industry to understand how these reforms will impact their organizations, contracts, and projects.

Overview

This post is meant to provide an overview of the prompt payment and mandatory adjudication provisions of Ontario's new Construction Act (the Act), which took effect on October 1, 2019.

This second round of amendments implementing prompt payment and adjudication requires significantly more preparation by all parties involved in a project — including owners, contractors, subcontractors, lenders, architects and engineers, etc. — who should be updating their internal procedures, contract negotiation, and contract drafting to manage the new processes and risks associated with the new regime.