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ARTICLE · 11 DECEMBER 2018

More Changes To The Construction Lien Act Are Coming In 2019

Devry Smith Frank LLP
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Ontario's new Construction Lien Amendment Act (the "Act") has significantly overhauled Ontario's construction law rules. While the first set of the amendments have already come into force ...

CanadaReal Estate and Construction
Christopher Statham
Christopher Statham
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Ontario's new Construction Lien Amendment Act (the "Act") has significantly overhauled Ontario's construction law rules. While the first set of the amendments have already come into force (see our previous blog here), the second set of changes with respect to prompt payment, a new adjudication process and procedural rules are set to come into force on October 1, 2019.

Prompt Payment

The Act imposes some tight timelines for payments to contractors and subcontractors in situations involving both public and private contracts. Under the Act, outstanding amounts between an owner and contractor must be paid within 28 days of a proper invoice. Subsequent payments to subcontractors must be paid within 7 days that the contractor receives the payment from the owner. If the contractor was not paid within the 28 day period, the contractor can either pay out its subcontractors anyways or issue a notice of non-payment in the prescribed form. If the owner disputes a portion of

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