Notification Window

Construction Lien Act: Dates announced, draft regulations posted for comment

The Ministry of the Attorney General has announced the effective dates of the amendments to the Construction Lien Act and posted the draft regulations.
Bill 142, Construction Lien Amendment Act 2017, received Royal Assent on December 12, 2017, but the substantive amendments have not come into force yet. The currently scheduled effective dates are:
● July 1, 2018: amendments to modernize the construction lien and holdback rules; and
● October 1, 2019: amendments related to prompt payment, adjudication and liens against municipalities.
The Ministry of the Attorney General has developed four draft regulations to support the amendments:
1. Forms;
2. Procedures for Actions under Part VIII;
3. General (e.g. monetary thresholds for surety bonding and holdback and notice requirements); and
4. Adjudications under Part II.1 of the Act.
Consultation drafts of the regulations have been posted on Ontario’s Regulatory Registry and are available online at Construction Lien Act: Proposed Regulations. The regulations will be posted for 30 days, offering an opportunity to provide feedback by e-mail to magpolicy@ontario.ca. Comments will be reviewed during the posting period, with revisions made to the proposed regulations on an ongoing basis.
Should the decision be made to proceed with the regulations following the 30-day posting period, the proposed regulations will be finalized, submitted for approval and filed.
The OAA will be providing comment on the draft regulations.
It will also be bringing architectural practices up to speed with regard to:
● what the Act’s changes mean to their firms (e.g. statutory holdback on architects' fees and their release); and
● the architect's role in administering construction contracts.
As part of raising this awareness, there will be a need for professional development, including OAA News bulletins, an update of the Admission Courses, OAA Website content and downloadable documents as well as ConEd sessions at Conference focused on the changes.