In this series, we are looking at Ontario Bill 142, which is entering a second reading and is expected to pass into law in early 2018. The Construction Lien Amendment Act, 2017 will bring massive changes to the construction industry through a number of significant amendments, including implementing a mandatory adjudication process that applies to every contract signed after the bill becomes law. This is the first of two posts about proposed mandatory adjudication, exploring the reasons for implementing this new system.

Reducing delays through mandatory adjudication

Construction projects always involve a lot of different actors, connected by various contractual relationships. When a dispute arises between parties working on the project, it can take months to reach a legal resolution, and a great deal of time and money can be lost in the interim. To streamline the dispute resolution process and minimize these related delays, Bill 142 seeks to establish a mandatory adjudication regime, as a means of resolving disputes between owners, contractors, subcontractors and suppliers. The regime will apply to matters such as:

  • Payments and change orders;
  • Valuation of services and/or materials;
  • Release of holdback disputes;
  • Challenges relating to notices of non-payment given under the prompt payment regime;
  • Set-off claims; or
  • Other issues that the parties have agreed in advance to submit to adjudication.

Disputes relating to the Prompt Payment Regime established by the new Bill will also be subject to mandatory adjudication. In the future, new regulations may further expand the scope of mandatory adjudication and its application.

Knowledgeable construction lawyers serving Kitchener-Waterloo

At Duncan, Linton LLP, our experienced lawyers work closely with our construction clients to resolve their disputes, and have successfully represented clients before arbitrators and Ontario’s Courts. We will be prepared for the new Construction Act requirement for mandatory adjudication of disputes, and can advise new and existing clients about the scope of the process.

We are advising clients about the potential implications of Bill 142 for their business. Contact us online or call 519-886-3340 to make an appointment.