Ontario Construction Lien Act Review Released

For the past two years we’ve been discussing the need for trade payment terms being legislated and have kept you up to date through our bulletins and columns in Glass Canada magazine. The OGMA teamed up with Prompt Payment Ontario (PPO) as we considered this the best means of achieving this goal. The CLA Review legal team submitted its final report to the Attorney General of Ontario in early May 2016. At long last, the report was released to the public on September 26, 2016. Read the report: https://www.attorneygeneral.jus.gov.on.ca/english/about/pubs/cla_report.

The report is a mind numbing 497 pages of extensive discussions, assessments, precedents, arguments, and recommendations covering every aspect of the Act try this. The great news for our industry is that the report is also recommending the adoption of payment terms, timely and affordable dispute resolution, project trust accounts, and the right of sub-contractors to cease work under certain conditions.

On September 29, OGMA President Angelo Cairo and board member Frank Fulton attended a special meeting called by PPO to discuss the initial assessment of the PPO legal team. There are still many fine details to be worked out, but the general first impression is very positive. Also, Bruce Reynolds, the chief legal architect of the review attended the meeting and addressed the trade associations and unions in attendance. Mr. Reynolds stated that “without PPO, there would not have been a CLA review” and that “the trades are the heart blood of the construction industry and need to be protected.”

Mr. Reynolds noted that the drafting of a revised Ontario Construction Lien Act is expected to be completed in the spring of 2017 and enacted into law in September 2017.

Click here to download PPO’s press release.

Categories: Members Bulletins