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ARTICLE · 27 AUGUST 2024

After Construction Adjudication: Achieving Prompt Payment In High Tech Power Inc. v. BDA Inc.

Prompt payment is a fundamental goal of adjudication processes under the Construction Act and crucial to ensuring that the flow of money on construction projects is protected.

CanadaReal Estate and Construction

Prompt payment is a fundamental goal of adjudication processes under the Construction Act and crucial to ensuring that the flow of money on construction projects is protected.1 This goal is frustrated where determinations are not meaningfully complied with. In a recent Ontario Superior Court of Justice case, High Tech Power Inc. v. BDA Inc., Mills J. rendered a decision motivated by this very concern and consistent with the practical, not merely symbolic, goal of prompt payment.2

The Decision

Following an adjudication under the Construction Act, High Tech Power Inc. ("High Tech") obtained a favourable determination against BDA Inc. ("BDA") for $316,960.26. However, when BDA paid out the amount, it did so through its lawyers, with the funds being placed in its lawyers' trust account. Thereafter, on consent, $161,037.68 was released to satisfy a debt owed by High Tech to its unionized workers, but the balance of $155,922.58 continued to be held in trust by the

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