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ARTICLE · 02 JUNE 2017

New Construction Lien Act – Countdown To The Reveal

Blaney McMurtry LLP
Blaney McMurtry LLP
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Within the next 7 days, Ontario will unveil significant changes to the Construction Lien Act, which have been more than two years in the making.

CanadaReal Estate and Construction

Within the next 7 days, Ontario will unveil significant changes to the Construction Lien Act, which have been more than two years in the making.  The Act, to be renamed the Construction Act, will shift the focus of the legislation from primarily being on security of payment, to an intended balance between security of payment and efficient dispute resolution.

The new Act is expected to introduce prompt payment provisions, which require an owner to pay a contractor within 28 days of receipt of a proper invoice, and for a contractor to pay its subcontractors within 7 days of receipt of funds from the owner.

To give teeth to the prompt payment provisions, the new Act is also expected to introduce “Adjudication” of disputes.  Adjudication, present in the UK, but largely unknown in the North American construction industry, is intended to be a swift and flexible dispute resolution mechanism.  Procedurally, it will bear some resemblance to an arbitration proceeding, though

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