The prompt payment and adjudication amendments to the
Construction Act (the "Act") came into force and
effect on October 1, 2019.
Among the many changes to Ontario's construction laws that
were introduced by Bill 142, the Construction Lien Act
Amendment Act, 2017, prompt payment rules and adjudication
will have the largest impact on construction projects in the
province of Ontario. These two new legal regimes are a true culture
shift in the Ontario construction sector. The rest of the country
appears to be not too far behind.
The Act implements a mandatory fast-track dispute resolution
process designed to get cash flowing more quickly on the projects
and to reduce the cost of large and lengthy disputes. This article
sets out how adjudication will apply to all new construction
projects unless a procurement process (RFP, RFQ, request for
quotation) has been commenced or a contract has been entered into
for that project prior to October 1, 2019.
