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What Do You Need to Know About the Construction Act?

New Act Comes into Effect July 1

The Construction Act (CA) comes into force on July 1, 2018, replacing the Construction Lien Act (CLA) for all projects where:
a) a contract was entered into on or after July 1, 2018, regardless of when any subcontract under the contract was entered into;
b) a procurement process, if any, was commenced on or after July 1, 2018 by the owner of the premises; or
c) the premises is subject to leasehold interest and the lease was first entered into on or after July 1, 2018. 
In order to assist members with providing architectural services under the new legislation and the transition from CLA to CA, the OAA has already issued three Practice Tips 10, 10.1 and 10.2 dealing with the procedure for the release of statutory lien holdbacks:
PT.10, Procedures for the Release of Statutory Lien Holdbacks–Construction Act (CA) / Construction Lien Act (CLA);
PT.10.1, Procedures for the Release of Statutory Lien Holdbacks–Construction Lien Act (CLA): Certificate of Substantial Performance of the Contract–Certificate of Completion of Subcontract – Statement of Contract Deemed Completed; and
PT.10.2, Procedures for the Release of Statutory Lien Holdbacks–Construction Act (CA): Certificate of Substantial Performance of the Contract – Certificate of Completion of Subcontract–Statement of Contract Deemed Completed–Early Release of Holdback. 
Drafts of the revised Document 100 OAA/OGCA, Take-Over Procedures, have been completed and were approved by the OAA Council at its June 20 meeting. The drafts are now being reviewed by the Ontario General Contractors Association.
A draft of the amendments to OAA 600-2013 related to coordination with the Construction Act was also approved at the OAA Council’s June 20 meeting. OAA 900-2014 will also be amended to cover issues related to the CA
Further Practice Tips related to prompt payment and adjudication, which do not become effective until October 2019, are planned for later in the year.