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ARTICLE · 25 NOVEMBER 2016

Proposed Changes To The Construction Lien Act: What Do They Mean For The Construction Industry?

Osler, Hoskin & Harcourt LLP
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The long-awaited report (the Report) on potential amendments to the Construction Lien Act (the CLA), which was commissioned by the Ontario Ministry of the Attorney General (the Ministry),

CanadaReal Estate and Construction
Roger Gillott
Roger Gillott
Ethan McCarthy
Ethan McCarthy
Richard Wong
Richard Wong
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The long-awaited report (the Report) on potential amendments to the Construction Lien Act (the CLA), which was commissioned by the Ontario Ministry of the Attorney General (the Ministry 1), has now been released. Among other things, the Report recommends the following:

  • the adoption of a prompt payment regime requiring payment within 28 days of submission of a proper invoice (subject to specific set-off notices)
  • mandatory speedy adjudication of construction disputes, wherein a decision will be rendered within 30 days
  • mandatory holdback release (subject to specific set-off notices), with permissible phased release of holdback on lengthy or segmented projects

The current CLA was enacted in 1983 and has not undergone a holistic review since its enactment, until now. Significant lobbying efforts by the construction industry, together with developments in the industry that include the increasing popularity of public-private partnerships, necessitated a critical

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