b'LEGISLATIONThe new prompt payment section requires owners to either payGoldman Sloan Nash & Haber. I believe the new act is working invoices in 28 calendar days or dispute payment within well and mitigating some previous concerns about prompt 14 days with proper rationale. Contractors must then pay subspayment and lengthy dispute resolution processes. A positive or dispute payment within seven days of receiving payment. indicator is the recent uptick in adjudications commenced under the act. The new adjudication section is referred to as a quick method to resolve disputes. It must begin prior to the completion ofDu Vernet also points to recommendation 100 from the a contract or subcontract unless the parties agree otherwise.2016 Attorney Generals report to include a requirement to Adjudication is the responsibility of the Ontario Disputereview the new act five years after receiving royal assent. This Adjudication for Construction Contracts (ODACC) authority. Therecommendation did not become a part of the act. However, new act is the first time in Canada that prompt payment andwith five years having passed, the construction industry has adjudication are contained within a lien act. been in discussions with the Ontario Attorney Generals office Construction lien and holdback rules are also updated,about the need to review and fix some legal and technical including a better definition of large multiple-owner publicproblems in the new act that have been discovered as its use projects, 60-day registration of liens and 90 days to start courtincreases in the industry.action, new bookkeeping rules protecting against contractor bankruptcy, and payment of holdbacks when the lien filingAccording to Ackerley, The changes involve mostly finetuning timeline ends. and resolving conflicts between different sections of the new act. There are also some key problems that need to be sorted PROGRESSout in areas such as a process to ensure contractors and subs Since 2017, the staged introduction, grandfathering ofknow invoices have been submitted so payment timelines can projects and COVID delay of some construction projects havekick in and defining how the single matter term is interpreted been a challenging start for the new act. Unfortunately, afterin the arbitration process.it came into force, these issues also delayed the use and understanding of the new act by a good portion of the industry. Ackerley goes on to say that in some areas, the new act is like Despite TCA and other construction associations offeringa board game with no rules. Without an understanding of the seminars to educate members on the specifics of the new act,rules and interpretations of the new act, it is difficult to apply the uptake was low and it appeared the construction industryits provisions. The industry is proposing these holes should was simply ignoring the new requirements and continuing tobe dealt with in a government omnibus bill versus the lengthy operate under the old regime. process used to determine the recommendations for revisions to the old act. The changes needed do not change any of the There are three levels of new act awareness amongstpolicy issues associated with the new act. construction people, says Glenn Ackerley, partner withThe construction industry is in support of the changes to the WeirFoulds LLP. Those who are fully aware of the provisions, those who know of the new provisions but choose to hold on toprevious Lien Act that modernized an antiquated document, the old regime, and those that are operating in the past whilesums up Mollenhauer. However, the new act is now in force trying to catch up to the new rules. for new projects and the prompt payment and adjudication requirements are a key part of the new regime. Everything has Ontario is leading the way in Canada with the new provisionschanged in this area and members need to understand what of the Construction Act, adds Kaleigh Du Vernet, partner withthis means for their businesses.Engineer YourDream Career Humbers Bachelor of EngineeringThe Built Environment degree provides hands-on experience with industry-standard advanced technology. Sustainability is woven throughout the degree through real industry projects where students learn to design buildings and communities that are adaptable and resilient. A mandatory 12-month co-op work placement ensures that graduates are ready for their dream career in engineering.Apply today!humber.ca/engineeringBUILDERSDIGEST Quarter 4 202219'