Construction Lien Act under review by Ontario government

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.

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. Reynolds was chosen for his in-depth, practical experience and his scholarship in the field.

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.

An introductory letter will be issued to key stakeholders by the review, describing next steps and preliminary plans for stakeholder outreach.

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. Enacted in 1983, it was last amended in the Open for Business Act, 2010, to incorporate feedback from construction stakeholders.