Page 44 - ACMO_CM_W24

Legal & Regulatory Updates

Alex Young
Associate,
Gardiner Miller Arnold LLP

J. Robert Gardiner,
B.A., LL.B., ACCI, FCCI,
senior partner
Gardiner Miller Arnold LLP

New Construction Act

Changes Affecting Managers

Managers must quickly adapt to the or their employee who has pay the holdback amount 14 days
new changes to Ontario’s Construction registered a proper construction after that 60-day lien period has
Act which address four key priorities: lien on time on the property. The expired – but not if a valid lien has
mandating the annual release of hold- holdback may be retained by the been “preserved and perfected”,
back amounts, expiry of liens, new condo in cash or protected by and registered on title, as long
information required for a “proper a letter of credit or a bond in a as the lien has not been paid or
invoice” and a new system for access to prescribed form. subject to an order declaring it to
adjudication. • Owners must now release be discharged, vacated or expired.
On November 6, 2024, Bill 216, Build- holdbacks annually as of the A certificate of action must be
ing Ontario For You Act (Budget anniversary of the date any new registered on title on time.
Measures) amended Ontario’s Construc- contract was entered into (being • Owners may only withhold
tion Act and was proclaimed into law on the “Contract Anniversary Date”). paying holdbacks if a lien has
November 6, 2024. Previously, no set timeframe been preserved or perfected under
existed. those circumstances, until the
Key Amendments: • The condo must publish a “Notice outcome has been determined.
1. Holdback Regime: of Annual Release of Accrued • Provisions which used to
• A condo should holdback 10% of Holdback” within 14 days after the otherwise permit non-payment
the cost of construction services Contract Anniversary Date, in a of holdbacks in certain
and materials from each invoiced prescribed form which specifies the circumstances have been repealed. Photo: ©iStock.com/ South_agency
payment, or else face personal amount of the holdback payment • The general contractor must pay
liability to pay a contractor, and its due date. Any valid lien its subcontractors within 14 days
including a general contractor, expires 60 days after publication of receiving payment from the
subcontractor, materials supplier of that notice. The condo must condo, and each subcontractor
44 I CM Magazine WINTER 2024