b'THE CONSTRUCTION ACTWhen a prime contractor receives a notice ofparty to pay the other party, the paymentHave you discussed prompt paymentnon-payment, they have two choices. must be made within 10 days of the issuing ofwith your regular customers? Are they 1. Despitenotreceivingpaymentinfull,the determination. aware of the changes? Prompt payment affects everyone in the construction they may choose to still pay their sub- It is also important to note that adjudicationpyramid from residential to commercial trades and/or suppliers in full out of theirapplies to more than just prompt payment.and industrial, including public works. It own resources (non-contract funds). The following disputes may be referred tocannot be contracted out of.2. adjudication for resolution:s your team ready and aware of these Within seven days of receiving this notice,Ichanges? This will not just affect your the prime contractor must issue a similarvaluation for services/materials supplied,paymentdisputesincludingchangeaccounting department, but also procure-noticeofnon-paymenttoitssubtrades and suppliers notifying them that all or aorders, ment, project managers, business owners, portion of their invoice will not be paid.disputesovernon-payment(promptsuppliers and on and on.payment), Have you reviewed the various Iftheprimecontractordoesnotagreeor amounts retained as set-off, forms? You can find the full list here:accept the reason for the non-payment fromnon-payment of holdback, and http://ontariocourtforms.on.ca/en/ theowner,thentheymaychoosetoreferother items as agreed or prescribed. construction-lien-act-forms/ the dispute to adjudication. Further to thisHave you considered new tech solutionspoint, if the basis for a contractor decidingBest practices in preparation forto help your team manage these new not to pay its subcontractor is the contractorsthese changes timelines and requirements? Pay Prompt, receiptofanoticeofnon-paymentfroma web-based program developed by a the owner, then the contractor is requiredWe are often asked by contractors what theyteam of lawyers from WeirFoulds LLP, under the new Act to refer its dispute withcan do to prepare their organizations for theseis a great option. You can contact Faren the owner to adjudication in order to avoidchanges. Below is a quick list of suggestionsBogach for a free demonstration at having to make prompt payment. to prepare your organization and your team. fbogach@payprompt.ca.Do you work only in Ontario or across Have you discussed these changes with What is adjudication and whoyour lawyer? Have your contracts beenother provinces? This legislation is just are the adjudicators? updated to reflect these changes? (Hint:for Ontario but many of the other prov-Adjudicationisanewdisputeresolutionpay when paid clauses are no longer validinces are rolling out similar legislation. process that allows parties to present theirand cannot be relied upon.) Change is coming.dispute to an independent third party for a decision. The adjudication process is being overseenbythenewlyformedOntario Dispute Adjudication for Construction Con-tracts (ODACC). To date, there are approxi-mately 32 approved adjudicators in Ontario, but this list is expected to grow significantly over the next 12 months. The adjudicators areamixoflawyers,quantitysurveyors, project managers, engineers and architects. A full list of adjudicators is available on the ODACC website. Adjudicationisexpectedtofacilitatethe early,simpleandcost-effectiveresolution ofroutineconstructiondisputeswith theintentionofkeepingprojectsmoving forward. The majority of adjudications are not expected to require an in-person hearing but,rather,willjustrequireasubmission ofdocumentationforreview.Atthesame time, the rules have been designed with the intentiontoaccommodatemorecomplex disputesinvolvinglargerclaims.Under eitherscenario,theappointedadjudicator will consider the evidence and make a deci-sion (a determination) within thirty days oftheclaimantsubmittingitssupporting documents. The determination is binding on all parties and if the adjudicator orders one Ontario Electrical Contractor15'