Ontario Launches Expert Review of Construction Lien Act
Review to Include Payment Issues in Province's Construction Sector
Ontario is launching an expert review of the Construction Lien Act that will include the examination of payment issues within the construction sector.
Ontario has selected Bruce Reynolds as Counsel to conduct the review, which was commissioned in response to stakeholder concerns related to prompt payment and effective dispute resolution in Ontario's construction industry, such as encouraging timely payment for services and materials, and making sure payment risk is distributed fairly.
Mr. Reynolds is a leading expert in construction law and a senior partner at Borden Ladner Gervais LLP. He represents various participants in the construction industry, including constructors, subcontractors, suppliers, private owners, municipalities, condominium corporations, homeowners, lenders, government agencies, insurers, sureties, and industry associations. Mr. Reynolds was chosen for his in-depth, practical experience and his scholarship in the field.
Mr. Reynolds will be supported by BLG partner and co-Counsel Sharon Vogel, and an experienced legal team from BLG's Construction Law Group.
It is anticipated that the review will be completed by December 2015, and will involve extensive consultation with the construction industry followed by a report to the Province. The report will include the results of the consultation process, the expert advice of Mr. Reynolds and his recommendations for changes, if necessary.
An introductory letter will be issued to key stakeholders by the review, describing next steps and preliminary plans for stakeholder outreach.
Strengthening Ontario's construction sector is part of the government's economic plan for Ontario. The four-part plan is building Ontario up by investing in people's talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives, and building a secure savings plan so everyone can afford to retire.
- Ontario’s Construction Lien Act establishes a system of lien and holdback rights, and trust provisions to provide financial protection to those who supply services or materials to a construction project.
- The Construction Lien Act was enacted in 1983 and last amended in the Open for Business Act, 2010, to incorporate feedback from construction stakeholders.