Prompt Payment information package available
July 27, 2015 ByPatrick Flannery
July 27, 2015 – Lawyers charged with conducting a review of the Ontario Construction Liens Act have released a comprehensive document designed to educate industry stakeholders about the issues the review will be considering this fall. The document contains valuable background on the present law and common practices surrounding payment for construction contracting, and lists dozens of proposals for remedies and improvements that the review will consider. Upon completion of the review later this year, Bruce Reynolds, lead counsel for the review, will report his findings to the Ontario government including input gathered from across the Ontario construction industry. This information is expected to inform Ontario government policy going forward, including possible new legislation and/or regulations governing payment practices. The Ontario Glass and Metal Association is circulating the report and encouraging Ontario glaziers to submit their comments.
Some issues the review will consider:
- Ways to address issues arising from phased projects, public-private partnerships and other evolutions in project ownership that have become more common in recent years.
- “Pay when paid” and “pay if paid” clauses and whether they should be allowed.
- The formation of arbitration bodies to more swiftly resolve disputes.
- The use of bidder exclusion policies by governments to negotiate favourable contract terms and shut out bidders who have previously brought legal proceedings against them.
- The standard holdback amounts and the terms for release and set-off.
Review counsel will be announcing dates for consultation meetings where industry stakeholders can give their input. Written comments can be submitted to Sandra Skivsky, director of marketing and business development for the Canada Masonry Centre.
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