The Government of Saskatchewan introduced legislation today to better protect and define the rights and obligations of owners, developers, contractors, and subcontractors. The proposed Builders’ Lien (Prompt Payment) Amendment Act, 2018, will create a payment process to establish reasonable timelines for providing payment for construction projects.
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Ontario’s Construction Lien Amendment Act, 2017 was passed in December 2017, but the changes will be rolled out later this year and during 2019 as the various elements of the act are proclaimed. The overhaul of Ontario’s construction regulatory framework includes prompt payment rules.
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The 2017 Arcadis Construction Disputes Report states 30 per cent of construction projects in North America end up in dispute. In Canada, the construction industry is adept at solving technical problems and developing innovative and new methods and materials.
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In July 2016, the Ontario Court of Appeal delivered judgment in a bizarre case of dismissal of six construction lien actions, and one trust action, for a 15-year delay. What might this mean for your project, should a case ensue?
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In the May 2010 issue of Construction Canada, this author wrote an article—“Ontario: The New Rules of Practice”—that examined how changes in the province were intended to reduce costs and delay in litigation, and facilitate the early and fair resolution of disputes. Two years after the rule has become law, the question is whether it is working. One of the changes was the provision of a summary judgment in litigation cases without a trial (Section 20 of the Rules of Civil Procedure). The Rule 20 amendments took up some four and a half pages; they were bound to attract the scent of controversy, and lawyers quickly engaged in swarms of summary judgment cases.
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Contractors who deal with condominium corporations should be aware of recent reports in the press of a case involving alleged construction fraud and mortgage fraud perpetrated by a property manager. The story of the $20-plus million fraud was first reported by The Toronto Star in September 2011. The number of condominium corporations affected by the alleged fraud now stands at nine and counting, and police are continuing their investigation.
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With the continued evolution of the construction world, coupled with the increasingly complex nature of building projects, disputes between the various parties will inevitably arise. While the parties may resort to litigation or some other form of alternative dispute resolution (ADR), an expert is frequently called on to assist the trier of fact.
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