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ARTICLE · 20 JULY 2018

Somewhat Lost In Transition?

Singleton Urquhart Reynolds Vogel LLP
Singleton Urquhart Reynolds Vogel LLP
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Singleton Urquhart Reynolds Vogel LLP

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As the roll out of the modernization provisions of Ontario's newly named Construction Act approaches on July 1, 2018, stakeholders have advised that they feel slightly lost in relation...

CanadaReal Estate and Construction
Bruce Reynolds
Bruce Reynolds
Sharon Vogel
Sharon Vogel
James Little
James Little

A Review of the Intent and Operation of the Transition Period in Ontario's Construction Act

As the roll out of the modernization provisions of Ontario's newly named Construction Act (the "Act") approaches on July 1, 2018, stakeholders have advised that they feel slightly lost in relation to the transitional elements of the legislation (i.e. Section 87.3). Concerns have been raised about what is changing under the new provisions and when those changes will take effect. While we certainly recommend speaking with a lawyer in relation to particular fact scenarios arising during this transition phase, below is a summary of the intent and operation of the transition period.

The amendments to the Act are to be implemented in two phases. Phase I (amendments related to modernization of the lien and holdback rules) takes effect on July 1, 2018. Phase II (amendments related to prompt payment, adjudication and municipalities) does not take effect until October 1, 2019.

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