COCA Cautiously Optimistic About Passage of Ontario’s Prompt Payment Legislation

 June 23, 2017

Legislation introduced by Ontario Attorney General Yasir Naqvi could be passed by the end of the year, says the Council of Ontario Construction Associations (COCA) in its June newsletter. However, COCA notes the bill faces a number of challenges.

Bill 142, Construction Lien Amendment Act 2017, would update the existing act in several ways, such as introducing interim adjudication of disputes to keep projects moving ahead and prescribing a payment regime so that contractors and their suppliers are paid in a fair and timely way. The bill reflects recommendations made in Striking the Balance: Expert Review of Ontario’s Construction Lien Act, a report produced by Bruce Reynolds and Sharon Vogel after almost 18 months of consultations with stakeholders and a panel of experts.

For the bill to pass by the end of the Ontario Legislature’s fall 2017 session, which has only 48 sitting days, here’s what has to happen:

• it must pass second reading and be referred to a standing committee of the legislature very early in the session

• the standing committee to which the bill has been referred will have to make it a high priority, convening public hearings, conducting a clause-by-clause review, and possibly considering amendments. The committee will have to report the bill back to the legislature for third reading and Royal Assent

• the Ministry of the Attorney General must draft all regulations under the bill. It can’t come into effect until they have been drafted and approved

While the list is daunting, COCA points out that Minister Naqvi is also the Government House Leader in charge of the agenda of the legislature, and so may be able to see the bill through the legislature in good time. As for COCA, its Construction Lien Act Task Force has already met to discuss Bill 142 and to develop a plan for providing feedback to Minister Naqvi before the end of summer.

Read the full article in COCA’s June newsletter: http://myemail.constantcontact.com/Construction-in-Ontario-Newsletter—June-2017-Edition.html?soid=1106091887050&aid=bGd7D9dDSL0

Photo source: uwekern on Pixabay.