Share on LinkedInShare on LinkedIn

ARTICLE · 18 OCTOBER 2019

Construction Contracts: New Mandatory Prompt Payment Requirements And Adjudication

Fogler, Rubinoff LLP
Explore more from Fogler, Rubinoff LLP

On October 1, 2019, the second set of amendments to the Construction Lien Act came into force. Now called the Construction Act, these amendments

CanadaReal Estate and Construction
Carol A. Dirks
Carol A. Dirks
Author LinkedIn connections

On October 1, 2019, the second set of amendments to the Construction Lien Act came into force. Now called the Construction Act, these amendments concern much more than construction liens and have a serious impact on the entire construction industry.

These new amendments are designed to improve the cash flow to contractors and sub-trades working on construction projects so that they "get paid on time" and also to establish a process to resolve payment disputes quickly.

What Contracts Does it Apply to?

The Construction Act applies to any contract entered into by a contractor with a property owner to supply service or materials to an improvement in respect of any land. The term "improvement" includes alterations, additions or capital repairs to the land, any construction or installation on the land (including mechanical and electrical), and complete or partial demolition of any building, structure or works on the land.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Could The Old Ontario Construction Lien Act Still Apply To Your Project? The Court Of Appeal Weighs In

A 2026 Ontario Court of Appeal decision reveals that construction contracts signed years after legislative reforms may still be governed by the old Construction Lien Act if the procurement process began before July 1, 2018. The ruling demonstrates how early project proposals and negotiations can determine which statutory regime applies, regardless of when the final contract was executed or where the project was ultimately built.
CanadaReal Estate and Construction
Miller Thomson
Miller Thomson
Article

Here’s The Drill: Introducing The New CCDC 32 – 2026 Progressive Design-Build Contract

CCDC 32 introduces a progressive design-build framework that allows owners and design-builders to collaboratively develop project scope, budget, and schedule before committing to a final price. Through a two-phase structure with project gates and off-ramp provisions, this standardized contract addresses complex construction projects where requirements cannot be fully defined at the outset. How does this collaborative approach balance flexibility with cost certainty while reshaping traditional roles in const
CanadaReal Estate and Construction
WeirFoulds LLP
WeirFoulds LLP
Article

Update: Bare Trust Reporting Rules For 2026

The federal government has finalized revised reporting rules for bare trusts, significantly narrowing the original requirements. While bare trusts are generally exempt from filing for 2023-2025, certain arrangements involving separated legal and beneficial ownership will face new filing obligations starting with the 2026 taxation year, with specific exemptions for family trusts, joint ownership arrangements, and principal residences.
CanadaTax
Fogler, Rubinoff LLP
Fogler, Rubinoff LLP
Article

Ontario Court Of Appeal: Using The Words “at Any Time” Or “for Any Reason” In A Without Cause Termination Provision Does Not Breach The Employment Standards Act, 2000 (“ESA”)

The Ontario Court of Appeal has issued a landmark ruling on employment termination provisions, addressing whether contractual language permitting termination "at any time" or "for any reason" violates the Employment Standards Act. This decision overturns a controversial lower court ruling and provides crucial clarity for employers drafting termination clauses. The court emphasized a practical, contextual approach to interpreting employment contracts rather than isolating specific phrases.
CanadaEmployment and HR
Fogler, Rubinoff LLP
Fogler, Rubinoff LLP
Article

Court Of Appeal Clarifies Law On Mitigating Damages In Wrongful Dismissal Claims

The Ontario Court of Appeal has established new clarity on employer obligations in wrongful dismissal cases, addressing both the burden of proof for mitigation efforts and the treatment of income earned during notice periods. This ruling in Williamson v Brandt Tractor Inc. resolves critical questions about when employers must demonstrate available comparable employment and how courts should handle mitigation income from lower-paying positions.
CanadaEmployment and HR
Fogler, Rubinoff LLP
Fogler, Rubinoff LLP