The New Construction Act: Five Things You Need To Know By July 1, 2018

On July 1, 2018, the Ontario Construction Lien Act will become the Construction Act (the "Act"). This name change reflects the broader scope of the legislation. Not only has the Act been revised, several entirely new sections have been added to the Act. Together, these amendments and additions dramatically change the scope of the law governing Ontario's construction industry.

The sweeping amendments, which include a mandatory prompt payment regime, dispute adjudication and modifications to summary procedures, will affect all construction work in Ontario. However, several of these amendments will not take effect until October 1, 2019.

In this article, we set out five matters that have significant implications for all groups participating in the construction industry. Specifically, we discuss the broader application of the Act, changes to lien rights, the new holdback rules, the broader definitions of "substantial performance" and the rules on vacating liens.