As of July 1, 2018, the Construction Lien Act will be renamed the ‘Construction Act’, and significant amendments related to the modernization of the construction lien, hardbacks, and trust rules have taken effect. These changes were realized byt the Royal Assention of the Act in 2019. You can see step-by-step specifics on the essential ellements of the Act on our website under the “Prompt Payment” tab.

Turn the page to November 6, 2024 and an entirely new update of the act took place under Bill 216, Building Ontario for You Act. There were three major areas targeted after the independent review: holdback, adjudication and administration. These changes and to reduce administrative burdens, encourage timely payments, and improve dispute resolution.

The changes mainly fell under the following categories:
– mandatory annual release of holdback
– removal of an owner’s right of set-off against holdback
– broadened access to adjudication
– deemed lien for design services without improvement commencing

These changes will largely apply to all construction projects in Ontario, including those with contracts signed before the above amendments come into force regulations will further define transaction rules the details of how these new changes will be implemented.

Our thanks to the contributors of this article specifically down the Duke, a partner at Soloway  Wright Law LLP and Victoria Morvillo, of the litigation group at Soloway Wright LLP.

Click here to read an excellent summary of the specific changes to the Act.