The New - Construction Act - Coming Into Force Summary

  • December 05, 2017

By: Ted Betts

Third Reading of Bill 142 was carried on division on December 5, 2017. Royal Assent is expected later this month, and Proclamation next year, likely with some more changes.

Regulations are being worked on, and expected to be out for consultation in early 2018.

So when is Bill 142 in force? It depends on the section as the Bill will come into force at different times in accordance with section 85:

  • Most of the Bill becomes law on Royal Assent (likely later this month)
  • Many provisions will only come into force when proclaimed in force by the Lieutenant Governor. These provisions are waiting for prescribed forms or regulations to be adopted.

However, an amendment to Bill 142 (introduced near the last minute) permits some grandfathering of existing projects/improvements/contracts. In new section 87.3, the current Construction Lien Act continues to apply with respect to an improvement if,

  • a contract for the improvement was entered into before that day, regardless of when any subcontract under the contract was entered into;
  • a procurement process, if any, for the improvement was commenced before that day by the owner of the premises (including the making of a request for qualifications, a request for proposals or a call for tenders); or
  • the premises is subject to a leasehold interest, and the lease was first entered into before that day.
  • Parts I.1 (Prompt Payment) and II.1 (Adjudication) apply in respect of contracts entered into on or after the day subsection 11 (1) of the Construction Lien Amendment Act, 2017 (i.e. the adjudication provisions) comes into force, and in respect of subcontracts made under those contracts.