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Ontario Private Construction - Construction Act

Statute

Ontario’s second round of New Legislation pertaining to prompt payment and adjudication went into effect 10/1/19.  Click here to read more.

Ontario’s New Legislation for general contracts entered on or after 7/1/18.  Leasehold interest – date of the lease is on or after 7/1/18

Step 1: Notice
  • NACM recommends sending a non-statutory notice within 35 days of last furnishing.

Step 2: Lien
  • Prime Contractors: Within the earlier of 60 days from the certificate or declaration of the substantial performance being published or within 60 days of completion, abandonment or termination of the contract.
    The declaration functions very much the way a “Notice of Completion” functions in the U.S.  The Notice of Completion and Declaration of Substantial Performance were designed to shorten the lien deadline when a project is deemed to have been substantially completed. The declaration is typically initiated by the owner or prime contractor.  In some cases the publishing of declaration may occur prior to a trade completing its work.  
  • Others including Suppliers: Within the earlier of 60 days of last furnishing or the publishing of the certificate or declaration of substantial performance or within 60 days of completion or abandonment.
  • Contract for more than one improvement where each improvement is for non-contiguous lands, each improvement is deemed to be a separate contract.
  • Condo common element projects – Condominium Corporation and every owner must be notified.

Step 3: Foreclosure
  • A trial date must be obtained within the earlier of 2 years of lien filing or termination date. Foreclosure must be commenced within 90 days of lien filing to allow time for discovery etc.
  • A perfected lien expires 2 years after the lien filing date.

Contracts entered into prior to July 1, 2018

Step 1: Notice
  • Quick Deadline Alert: NACM recommends sending a non-statutory notice within 10 days of last furnishing.
  • Leasehold properties: Notice to Owner required in order for anyone in the construction tiers to be able to lien the Owner’s freehold interest. If not served, leasehold lien rights only. Owners have 15 days from receiving notice to object.

Step 2: Lien
  • Prime Contractors: Within the earlier of 45 days from the certificate or declaration of the substantial performance being published or within 45 days of completion or abandonment. The declaration functions very much the way a “Notice of Completion” functions in the U.S. The Notice of Completion and Declaration of Substantial Performance were designed to shorten the lien deadline when a project is deemed to have been substantially completed. The declaration is typically initiated by the owner or prime contractor. In some cases the publishing of declaration may occur prior to a trade completing its work.
  • Others including Suppliers: Within the earlier of 45 days of last furnishing or the publishing of the certificate or declaration of substantial performance or within 45 days of completion or abandonment.

Step 3: Foreclosure
  • A trial date must be obtained within 2 years of lien filing. Foreclosure should be commenced within 45 days of lien filing to allow time for discovery etc.
  • A perfected lien expires 2 years after the lien filing date.