The Construction Lien Amendment Act was passed in
December 2017 substantively changing the Construction Lien
Act, now the Construction Act (the
"Act"). The changes (i) modernize the
existing Construction Lien Act; (ii) institute prompt
payment legislation throughout Ontario; and (iii) introduce
adjudication provisions for disputes arising in the course of a
contract. For further information on the Act see our June
20, 2018 Update, Construction Act: Here We Go!,
our December 17, 2018 Update,Bill 57 and Amendments to the Construction
Act and our May 21, 2019 Update, Adjudication Under the Construction Act:
Tight Timelines and Document Management.
Prompt Payment
The new prompt payment regime introduced under the Act
comes into effect on October 1, 2019 and will have significant
implications for all levels of the construction pyramid in Ontario.
Working in conjunction with the new adjudication provisions, the
prompt payment provisions are intended to speed up the flow
