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ARTICLE · 02 MAY 2018

New Regulations Add Detail To The Construction Lien Amendment Act

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Although the CLAA made significant changes, it left some important details to be established in regulations.

CanadaReal Estate and Construction
Laura Brazil
Laura Brazil
Glenn Grenier
Glenn Grenier
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On December 5, 2017, the Ontario legislature unanimously passed Bill 142, the Construction Lien Amendment Act, 20171 (the "CLAA"). The CLAA made extensive changes to the Construction Lien Act,2 including the introduction of a prompt payment regime, adjudication, and changes to existing holdback, lien preservation and perfection periods, bonding, and trust provisions.

Although the CLAA made significant changes, it left some important details to be established in regulations. For example, what qualifications would a person need to act as an adjudicator? What mechanisms would be in place to ensure that an adjudicator's conduct is fair and appropriate? Which types of contracts would qualify for payment of holdback on an annual or phased basis?

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