What is the Construction Act and why did the Ontario Government pass Bill 142?
The passing of Bill 142 replaced the Construction Lien Act with the Construction Act (the Act). The Construction Lien Act has been in place since 1983 with only minimal amendments and it did not address serious issues related to prompt payment and timely dispute resolution.
At Ball Construction, we are very pleased to see the full implementation of the Construction Act. We believe the construction industry in Ontario will benefit from these changes in lien rights, holdbacks, trust obligations, prompt payment and dispute resolution (adjudication). The Act will help protect all stakeholders in our industry and create a new level of fairness.
The Act is relatively new and on October 1, 2019, the amendments dealing with prompt payment, adjudication and municipalities came into effect. All stakeholders will need to be aware of these timing changes in the payment chain.
Ball Construction supports these reforms and will gladly work with any of our subtrades, suppliers and owners to help them understand the Act.
If you would like to know more about the Construction Act, please contact us and we will do our best to help.