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ARTICLE · 16 DECEMBER 2019

Prompt Payment Movement Hits Canadian Construction And Infrastructure Sector

Osler, Hoskin & Harcourt LLP
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Prompt payment and mandatory adjudication legislation is being enacted across Canada in an effort to alleviate perceived payment delays down the construction pyramid.

CanadaReal Estate and Construction
Yan A. Besner
Yan A. Besner
Roger Gillott
Roger Gillott
Paul Ivanoff
Paul Ivanoff
Paula Olexiuk
Paula Olexiuk
Richard Wong
Richard Wong
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Prompt payment and mandatory adjudication legislation is being enacted across Canada in an effort to alleviate perceived payment delays down the construction pyramid. A watershed moment came in 2019 when such legislation came into force in Ontario through amendments to the Construction Act (formerly the Construction Lien Act). The development industry in Ontario is consumed with revising internal processes and re-drafting contracts to address the new rules, and will be grappling with the inevitable growing pains caused by the new legislation for some time. In the meantime, a number of other jurisdictions in Canada, including the federal government, are following Ontario's lead.

Introduced by the Construction Act, adjudication is a quick interim method to resolve disputes on a construction project.

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