Ontario’s Construction Lien Amendment Act, 2017 was passed in December 2017, but the changes were rolled out on July 1, 2018, and the second phase is scheduled to be rolled out on October 1, 2019. The overhaul of Ontario’s construction regulatory framework includes prompt payment rules. Even though the legislation applies only to Ontario, the implementation of prompt payment rules is expected to be closely watched by other jurisdictions across Canada. The changes to the Construction Act (the “Act”) will also modernize the lien and holdback process, and set out a new adjudication process to resolve payment disputes. Changes to the lien and holdback process took effect on July 1, 2018. The new prompt payment rules and the new adjudication process will take effect in 2019. PROMPT PAYMENT The section of the Act relating to prompt payment sets out short timelines for the payment of contractor and subcontractor invoices. The payer is required to make payments in accordance with the timelines, unless it provides a notice of non-payment. Amounts not paid in accordance with the timelines will accrue interest at a specified rate. The prompt payment regime applies to both private and “public contracts,” as that term is defined in the Act. The trigger for payment is the delivery of a “proper invoice” to the owner. A “proper invoice” is provided on a monthly basis, unless the contract specifies otherwise. A contract cannot make the giving of a “proper invoice” contingent upon payment certification or the prior approval of the invoice by the owner. LEGAL COLUMN BY CATHERINE E. WILLSON, B.A., LL.B. WITH ASSISTANCE FROM STEFANIE LIMA, B.A., J.D. ONTARIO’S NEW CONSTRUCTION ACT Summary and timelines of major changes 12 THE OFFICIAL PUBLICATION OF THE SCAFFOLD INDUSTRY ASSOCIATION OF CANADA