OGCA Welcomes Construction Lien Act Reforms
This legislation has three major themes: updating the Act; requirements for prompt payment; and establishment of mandatory adjudication to deal with disputes. These changes will improve the flow of funds through the industry, cause disputes to be settled quickly and ensure projects are delivered on time. However, the addition of prompt payment and adjudication are very big changes that will require an adjustment from all members. We are convinced that when implemented, they will address payment and disputes issues and the industry will be better for it. The AG’s office has produced schematics for the timeline process for prompt payment and the adjudication process, which you can access by clicking the links below.
These are extensive changes and OGCA will work with the Minister and the legislature to review the proposal in detail and ensure that it achieves its goals and rebalances the risks appropriately through the industry. The advisory committee that has helped craft the proposals will also support the development of supporting regulations later this year.
It is expected that the Bill will receive second reading by October and then be sent for Committee hearings. At this stage, amendments will likely be presented. It is possible it could receive third and final reading by the end of the year.
We congratulate the reviewers Bruce Reynolds and Sharon Vogel on their recommendations and thank Minister Naqvi for his commitment to address these issues and pass these reforms.