As first noted in Practice Advisory no. 33, the provincial government, through Bill 216: Building Ontario For You Act, has passed legislation that amends the Construction Act. Members should be prepared for the coming changes as they affect both construction contracts and architectural services contracts.
Background and Context
The Construction and Design Alliance of Ontario (CDAO) retained WeirFoulds to prepare a detailed joint industry submission to the provincial government identifying issues with the operation of the Construction Act that had come to light since it came into force. The government retained Glaholt Bowles LLP to undertake a review of the Act and conduct consultations. The result of that effort became part of Bill 216.
The amendments to the Construction Act, via Bill 216, relate to topics such as holdback, adjudication, and general administration. The updates are likely to impact OAA members either in their administration of construction contracts or in administration of services contracts with clients or subconsultants.
Click here to get access to the Construction Act.
For more detailed coverage of the changes to the Construction Act, there are a number of articles by law firms in Ontario on the Lexology.com web site, including articles by: Aird & Berliss, McMillan, and Blake Cassels & Graydon
The amendments are expected to come into force after regulations under the Act are written to add context and nuance. These amendments will require changes to a number of OAA documents, including the OAA 2021 Contract Suite and the Practice Tip PT.10 series.
The OAA continues to monitor how these updates will impact practices and clients. Members are also reminded to discuss with their legal counsel as required.
This article originally appeared in the Practice Advisory, a newsletter developed by the OAA’s Practice Advisory Services team, which offers numerous resources for both members and the public. The OAA does not provide legal, insurance, or accounting advice—readers are advised to consult their own legal, accounting, or insurance representatives to obtain suitable professional advice in those regards.