Preparing for changes to the Construction Act (2019)




Changes to the Construction Act are coming in 2019! The amendments to the construction lien and holdback rules came into effect on July 1, 2018. New prompt payment and adjudication processes, and amendments related to liens against municipalities, will come into effect on October 1, 2019. In the lead up, municipalities should be preparing for the following:
  • A new adjudication process
  • Prompt payment rules
Updates to the Act come from recommendations from a 2015 review of Ontario's construction laws. As part of the Restoring Trust Transparency and Accountability Act, 2018, which was passed on December 6, 2018, the government made additional targeted amendments to the Construction Act.

The following resources are available below to support municipalities in their preparation for these changes:
  • Impact of Bill 142 Construction Act on Municipalities (Frank Cowan Company)
  • MFOA letter in support of AMO recommendations
  • AMO's letter to AG on Construction Act recommendations
 

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