Construction Act: Here We Go!

Summary

The Construction Lien Amendment Act, passed in December 2017, amends the Construction Lien Act (the "Existing Act") and repeals and replaces the name of the Existing Act with the Construction Act (the "New Act"). Regulations to the New Act followed earlier this year.

The New Act has three primary purposes: to (i) modernize the Existing Act; (ii) provide for new prompt payment legislation throughout Ontario; and (iii) introduce adjudication provisions for disputes arising in the course of a construction contract. Full implementation of the New Act will occur on a progressive basis. While the prompt payment and adjudication provisions will not come into effect until October 2019, the modernization provisions come into effect on July 1, 2018.