OSPE - The Voice - Spring 2020 - 17

ADVOCACY IN ACTION

revoked or suspended; and to release confidential information
if there is a risk of harm to any person or property.

The changes also require PEO to maintain information of
discipline hearings in its register of licensees and ensure that
this information can be posted online. In addition, the public
can now obtain copies of documents and oral evidence from
discipline hearings.

*B
uilding Code Act - the changes define the role of inspectors
who conduct building condition evaluations and mandates
that the inspection must be conducted in an independent
manner. The changes also include provisions for continuing
education and professional development programs for
chief building officials, inspectors, registered code agencies
and designers. In addition, the maximum penalty for a
corporation convicted of a first offence under the Building
Code Act is increased from $100,000 to $500,000, and
subsequent offences are increased from $200,000 to
$1,500,000.

* Occupational Health and Safety Act - the maximum penalty
for an individual who contravenes the Occupational Health
and Safety Act is increased from $25,000 to $100,000, and
for corporations the penalty has increased from $500,000 to
$1,500,000. In addition, the limitation period for prosecution
under this Act is limited to 1 year following the occurrence of
the last offence or the day when an inspector became aware
of the offence. Please note that this limitation period is
shorter than the general 2-year limitation period that applies
to most civil claims.
The Construction Act - the Construction Lien Act was
significantly updated and renamed the Construction Act.4 The
changes were implemented in two phases:
* Phase One, July 1, 2018 - ushered in long, overdue updates
and modernization of the laws which guide the construction
industry. There were numerous changes, however the
following changes may have direct impact on members in
the construction industry:

o rules for P3 projects;
o the threshold for calculating substantial performance
has been increased from $500,000 to $1,000,000;
o clarification of trust obligations for funds received on
behalf of subcontractors or suppliers;
o clarification of statutory holdbacks and new holdback
options;
o t imeline for registration of construction liens has
increased from 45 days to 60 days;
o new standardized form for termination of contracts;
o introduction of workers trust fund liens;
o liens against landlord-owned properties; and
o c onstruction liens can now be pursued in Small
Claims Court.

*P
hase Two, October 1, 2019 - implemented the Prompt
Payment Regime and Adjudication. The Prompt Payment
Regime requires that an owner pay its contractor's invoice
within 28 days following receipt of a "proper invoice",
which is defined in the Act. The contractor must pay its
subcontractors within 7 days of the 28-day limit. If the
owner decides not to pay the contractor, it must send a
form called a Notice of Non-payment, which must outline
the amount in dispute and reason for non-payment. Similar
notices can be given to subcontractors. Please note that a
"contractor" is any construction professional, including
an engineer, who has a direct contract with the owner for
construction-related services.
Adjudication is a new program to deal with disputes on
construction projects. The mandatory process aims to
provide a fast means to secure an interim decision while the
construction project is being completed. The government
has set up an organization to carry out this program, known
as the Ontario Dispute Adjudication for Construction
Contracts ("ODACC"), which has already implemented
procedures and appointed adjudicators for the program.
The significance of Prompt Payment and Adjudication
cannot be understated, and we aim to detail them in our
next article.

https://www.ontario.ca/laws/regulation/R16392
https://www.ontario.ca/laws/regulation/R16029
3
https://www.ola.org/sites/default/files/node-files/bill/document/pdf/2017/2017-12/bill---text-41-2-en-b177ra_e.pdf|
4
https://www.attorneygeneral.jus.gov.on.ca/english/construction_law_in_ontario.php
1

Spring 2020 THE VOICE

OSPE - The Voice - Spring 2020

Table of Contents for the Digital Edition of OSPE - The Voice - Spring 2020