Construction Lien Act - Update from Attorney General

  • February 07, 2018

The OBA recently received an update from the Attorney General on the planned implementation of the amendments to the Construction Lien Act (the “Act”), a portion of which we wanted to share with you:
 

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Anticipated Proclamation Dates
 
As many of you are aware, Bill 142, Construction Lien Amendment Act, 2017, received Royal Assent on December 12, 2017, but most of the amendments are not yet in force. The non-substantive French-only and housekeeping amendments came into force on Royal Assent. The substantive amendments, including the amendments to modernize the construction lien and holdback rules and introduce new prompt payment and adjudication processes, have not yet taken effect, and will come into force on dates to be named by proclamation of the Lieutenant Governor.
 
The government is currently contemplating the following effective dates:
 

Substantive Amendments

Anticipated Effective Date

Amendments to modernize the construction lien and holdback rules

Summer 2018

Amendments related to prompt payment, adjudication and liens against    municipalities

Late 2019

 
We anticipate that the final proclamation dates will be announced in early February 2018.
 
Posting of Proposed Regulations for Comment
 
The ministry, in collaboration with Mr. Reynolds, Ms. Vogel and the Advisory Group, is currently drafting regulations to support the amendments to the Act. At this time, I would like to announce that it is the government’s intention to post the proposed regulations on Ontario’s Regulatory Registry in February 2018. The draft regulations will be posted for a period of 30 days, during which time you will have an opportunity to provide feedback online, using the Regulatory Registry website. The ministry will review your comments during the posting period and will make revisions to the proposed regulations, as necessary, on an ongoing basis. I encourage you to provide your input at your earliest convenience.
 
Following the 30-day posting period, the proposed regulations will be finalized, submitted for approval and filed.
 
Consolidated Version of the Act
 
To assist you to prepare for the implementation of the amendments, the ministry has prepared a document setting out the Act as it will appear when all amendments are in force (anticipated to be late 2019, as noted above). I have attached two documents to this email.
 
1.    A clean consolidation reflecting the Construction Act* as it will be when all amendments are in force (including all amendments made at Committee),which is also available on Ontario’s e-Laws website at: https://www.ontario.ca/laws/statute/90c30; and
2.    A comparison between the clean consolidation and the “old” (pre-Bill 142) CLA in track changes.
 
It is important to emphasize that many of the sections in the attached documents are not in force and will not take effect until they are proclaimed into force by the Lieutenant Governor. In other words, this document has been prepared for your convenience only, and does not reflect the current Act.
 
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The Construction and Infrastructure Law Executive will be watching these developments closely, with a view to providing input on the regulations when posted.  Please do not hesitate to contact us with your comments at (advocacy@oba.org).