Commentary period open for new Construction Act regulations
Ontario’s Ministry of the Attorney General has opened a 28-day window for interested parties to comment on a series of proposed changes to the Construction Act.
The proposed changes are the product of the independent review launched by the Ministry and led by construction-law expert Duncan Glaholt last summer. After meeting with stakeholders from across the industry, Glaholt issued his report to government on October 30 of last year.
The province’s Bill 216, Building Ontario For You Act (Budget Measures), 2024 amended the Construction Actby introducing a series of priority recommendations from the 44 proposed in Glaholt’s report. The aim of the amendments is to make improvements to the act under three key themes:
- Enhancing access to statutory adjudication to encourage more widespread use of this process, allowing more disputes to be resolved quickly and efficiently without relying on the court system, which tends to be lengthier and more costly.
- Mandating the annual release of holdback and implementing other changes to simplify the holdback regime, ensuring improved cashflow throughout the construction pyramid to contractors, subcontractors and trades.
- Providing greater clarity and certainty within the construction industry by making technical and housekeeping amendments.
Before these amendments can take effect, supporting regulatory amendments must first be developed, and the Ministry of the Attorney general is calling for feedback on a series of potential supporting regulations through the Ontario Regulatory Registry.
Until these regulations are finalized, the Construction Act remains unchanged and in force.
Submissions are due by September 24.