Prompt payment bill passes second reading in Ontario
By Patrick Flannery
According to a letter sent to Prompt Payment Ontario by Ontario Attorney General, Yasir Naqvi, Bill 142 Construction Lien Ammendment Act 2017 has passed second reading in the Ontario legislature and has been referred to committee for public hearings. Industry stakeholders, including the Ontario Glass and Metal Association which is a member of Prompt Payment Ontario, will have a chance to address the committee and give feedback on the proposed changes.
Information about the hearing process is available here.
Naqvi says the bill contains “revolutionary changes for Ontario’s construction industry.” Key proposals include formalizing rules for the timely payment of construction contracts, updating the rules for construction liens and holdbacks, and creating an arbitration process to speed up dispute resolution, potentially making possible “contingent” payments that flow money to contractors in advance of a court ruling.
A full discussion of the proposed changes is in Striking the Balance: Expert Review of Ontario’s Construction Lien Act, a report prepared by Bruce Reynolds and Sharon Vogel with input from PPO. The report is available to OGMA members through the association. According to Naqvi, the bill implemnents the recommendations of the report, plus a minor procedural change and a phase-in period to give the industry time to prepare for the changes.