OSPE - The Voice - Winter 2019 - 8
ADVOCACY IN ACTION
OSPE recommendations included
in Construction Act
Following several years of consultation with OSPE, the
Government of Ontario's changes to the Construction Act
regarding new prompt payments and adjudication processes,
and amendments related to liens against municipalities came
into effect.
OSPE has worked directly with government for years through
the Construction Lien Act review process to inform the
creation of this new legislation, effectively communicating
how prompt payment, holdback and dispute resolution practice
stood to negatively impact 400,000 Ontarians working in the
construction industry, including professional engineers.
OSPE's Infrastructure Task Force pushed for the establishment
of trust accounts for lien holdbacks, fair and timely payment
terms for services completed without dispute, and early
arbitration when disputes arise.
The government's goal with these changes was to modernize
and update the Construction Lien Act, which had not
undergone significant changes in 35 years. Some of the key
changes include:
8
THE VOICE
Winter 2020
New Rules regarding Alternative Financing and
Procurement Arrangements (AFP)
* The Act sets out the rules regarding: Section 31 (Expiry
of liens); Section 32 (Certification or declaration of
substantial performance); Section 33 (Certificate for
subcontract); and Section 39 (Right to information)
Updates Thresholds for Substantial Performance
* The threshold for substantial performance under
subclauses 2(1)(b)(ii) and (iii) has been amended to
increase the threshold from $500,000 to $1,000,000 in
each stage of the formula.
Duties for Trustees of Trust Funds
* Section 8.1 of the Act imposes duties on contractors and
subcontractors who are trustees of trust funds. These
requirements include:
o Depositing trust funds into a bank account in the
trustees name;
o Maintaining written records of trust funds, including
the amounts received into and paid out of the funds
and any transfers made; and
OSPE - The Voice - Winter 2019
Table of Contents for the Digital Edition of OSPE - The Voice - Winter 2019
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OSPE - The Voice - Winter 2019 - Cover3
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