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What is Construction Law?

Best Construction lawyers in Ontario, Canada as ranked by Lexpert

The practice of Construction Lawyers in Ontario is generally understood to comprise the provision of advice and representation, whether by way of negotiation, judicial proceedings, alternative dispute resolution, mediation or arbitration, in all matters relating to the construction process including preparation of contract documentation and related agreements, contract negotiations, claims for extras/credits, claims arising from alleged design changes, claims under bid bonds, performance bonds, labour and material payment bonds, lien bonds and judgment bonds, claims arising from delay, claims for consequential damages, claims in relation to environmentally hazardous materials and for unanticipated subsurface soil conditions encountered during construction, claims for negligence against consulting engineers and architects, and claims for breach of statutory trust.

 

Please note that the Lexpert directory has separate sections for:

  • Construction labour relations lawyers in Ontario
  • Occupational health and safety lawyers in Ontario
  • Property development lawyers in Ontario

 

What regulations are construction lawyers in Ontario concerned with?

As to adjudication in relation to the Construction Act of Ontario, only adjudicators listed under the registry of the Authorized Nominating Authority (ANA) may be allowed to adjudicate construction disputes. They would also have to undergo the necessary training and other requirements by the Construction Act and the ANA, which also gives them the power to cancel any registration of said adjudicators.

 

What laws do construction lawyers focus on?

The Construction Lien Act or Construction Act of Ontario was first enacted in 1983 and has been recently amended last 2017 through Bill 142. Below are some of its amendments:

 

Prompt Payment (Part I.1, the Act)

The Construction Act of Ontario provides that new mandatory minimum time period for payment of construction contracts. Now, the owner of the construction project is required to pay the contractor within 28 days from receipt of a “proper invoice”, as defined in section 6.1. After receipt of payment, the contract must in turn pay the subcontractor included in the said invoice within 7 days.

 

Under section 6.4(2), when an owner would want to dispute a proper invoice, a “notice of non-payment" must be given to the contractor, which specifies the amount not paid and the reasons for non-payment. Construction lawyers in Ontario can certainly help facilitate this.

 

Adjudication (Part II.1, the Act)

When problems arise, the Act states that adjudication should be done immediately to resolve any construction disputes. The Act provides that disputes shall be resolved by the adjudicator within 30 days from receiving the documents from the party requesting the adjudication. Any matter falling under section 13.5(1) may be referred to adjudication.

 

The effect of the determination, as provided in 13.15 (1), shall be binding upon the parties, until the matter is determined by a court; or determined by way of arbitration under the Arbitration Act; or by a written agreement between the parties.

 

Lien (Part III and V, the Act)

A lien on a property is created when a person who supplies services or materials to an improvement for an owner, contractor or subcontractor for the price of the said services or materials he/she has supplied (Section 14(1), the Act). Previously, the person who has a right to lien – contractors, workers, or any person – must file or perfect the lien within 45 days. But after the amendments, it has been extended to 60 days, but still from the date of the completion or abandonment of the project.

 

The extension of the period for the perfection of a lien connected with the amendments on prompt payment and adjudication. This is to encourage parties to first comply with their agreed payment, to proceed with adjudication if payment is not effected, before going to the enforcement of liens. In all stages, construction lawyers are there to facilitate the enforcement of any of those rights. What is prevented is for parties going to litigation which is more costly and tedious.

 

Holdbacks (Part IV, the Act)

Under Section 22(1) of the Construction Act of Ontario, holdbacks are the amount equal to 10% of every payment made as a security for any potential liens. These amounts are “held back” by a payor in a construction project, either the owner who must pay the contractor, or the contractor themselves who needs to pay the subcontractors, until all potential liens have been discharged.

 

Currently, there are new forms of holdbacks other than as funds, such as letter of credit; demand-worded holdback repayment bond; or in any other form to be agreed by the parties, as per Section 22(4). Payment of holdback can also be made on an annual basis (Section 26.1), phased basis (Section 26.2), or design phase (Section 26.1(3)).

 

If payments on holdback cannot be made, there should be notice of non-payment, resulting to the matter being referred to adjudication.

 

Trust Funds (Part II, the Act)

Amendments to the Construction Act of Ontario now imposes new duties on contractors and subcontractors. Both now become trustees of trust funds, and are required to deposit payments they receive in a bank account after the trustee’s name.

 

Mandatory Performance and Payment Bonds (Part XI.1, the Act)

In connection with the trust funds established by the contractors and subcontractors, Section 85.1 now requires contractors who, upon entering a “public contract”, “shall furnish the owner with a labour and material payment bond.” The coverage of the amount shall be 50% of the contract, or any other percentage of the contract price.

 

What is Section 32 of Ontario's Construction Act?

Construction Act of Ontario in Section 32 provides that a payment certifier must issue a Certification and Declaration of the Substantial Performance. This certifies that, at a certain date, the contractor has substantially completed the project. In the absence of a payment certifier, the owner and the contractor may jointly execute said certification.

 

What is Section 39 of Construction Act?

Section 39 of Ontario’s Construction Act provides that any person, or a person who has a lien, is a beneficiary of a trust, or is a mortgagee has the right to information from the owner, contractor, subcontractor, mortgagee, or trustee. Any person refusing to provide the requested information shall be liable under the Act.

 

What is Section 26 of the Construction Act?

The Construction Act of Ontario in Section 26 states that the payment of basic holdback is required to discharge all claims with respect to the lien that have already expired. Previously, the release of holdback was not mandatory, but is now made required after the amendments to the Act.

 

Do construction workers get overtime pay?

As a general rule, under the Ontario Regulation 285/01 and 288/01, constructions workers are not entitled to daily or weekly limits on hours of work. Hence, they do not get overtime pay.

 

Other benefits constructions workers are not entitled to are daily rest periods, time off between shifts, weekly/bi-weekly rest periods, notice of termination/termination pay, and severance pay.  However, this rule does not apply to construction workers who work in the maintenance, road building, or sewer and watermain construction. A construction lawyer based in Ontario would be able to advise on the differences here.

 

Want to know more about Ontario’s construction law? Consult with the best construction lawyers in Ontario by heading down below to our Lexpert Ranked list.

Ontario

Toronto Leading Firms - Major Full Service
Most Frequently Recommended
Borden Ladner Gervais LLP (BLG)
Cassels Brock & Blackwell LLP
Goodmans LLP
Osler, Hoskin & Harcourt LLP
WeirFoulds LLP
Consistently Recommended
DLA Piper (Canada) LLP
Gowling WLG
McCarthy Tétrault LLP
McMillan LLP
Repeatedly Recommended
Blake, Cassels & Graydon LLP
Blaney McMurtry LLP
Clyde & Co Canada LLP
Fasken Martineau DuMoulin LLP
Miller Thomson LLP
Norton Rose Fulbright Canada LLP
Torkin Manes LLP
Toronto Leading Firms - Mid-Sized & Smaller
Most Frequently Recommended
Glaholt Bowles LLP
Singleton Urquhart Reynolds Vogel LLP
Consistently Recommended
Gibbs & Associates
Repeatedly Recommended
Goldman Sloan Nash & Haber LLP
Toronto Leading Firms - Boutique Firms
Consistently Recommended
Construct Legal
Repeatedly Recommended
Heal & Co.
Lundy Levy Eski Baum
McCague Borlack LLP
McLauchlin & Associates
Toronto Leading Practitioners
Most Frequently Recommended
Glenn W. Ackerley
Toronto, Ontario
WeirFoulds LLP
Sandra Astolfo
Toronto, Ontario
WeirFoulds LLP
Geza R. Banfai
Toronto, Ontario
McMillan LLP
Brendan D. Bowles
Toronto, Ontario
Glaholt Bowles LLP
Duncan W. Glaholt
Toronto, Ontario
Glaholt ADR Inc.
Howard Krupat
Toronto, Ontario
DLA Piper (Canada) LLP
Andrea Lee
Toronto, Ontario
Glaholt Bowles LLP
R. Bruce Reynolds
Toronto, Ontario
Singleton Urquhart Reynolds Vogel LLP
Sharon C. Vogel
Toronto, Ontario
Singleton Urquhart Reynolds Vogel LLP
Howard M. Wise
Toronto, Ontario
Goodmans LLP
Consistently Recommended
Matthew R. Alter
Toronto, Ontario
Cassels Brock & Blackwell LLP
Jason J. Annibale
Toronto, Ontario
McMillan LLP
Ted Betts
Toronto, Ontario
Gowling WLG
Faren Bogach
Toronto, Ontario
Construct Legal
Joseph Cosentino
Toronto, Ontario
Goodmans LLP
Annik Forristal
Toronto, Ontario
McMillan LLP
Gary W. Gibbs
Toronto, Ontario
Gibbs & Associates
Roger J. Gillott
Toronto, Ontario
Osler, Hoskin & Harcourt LLP
Karen Groulx
Toronto, Ontario
Dentons Canada LLP
Bradley Halfin
Toronto, Ontario
Goodmans LLP
Andrew J. Heal
Toronto, Ontario
Heal & Co.
Paul A. Ivanoff
Toronto, Ontario
Osler, Hoskin & Harcourt LLP
Robert John Kennaley
Toronto, Ontario
Kennaley Construction Law
Harvey J. Kirsh
Toronto, Ontario
Kirsh Construction ADR Services Ltd
John Margie
Toronto, Ontario
Margie Strub Construction Law LLP
Bernie McGarva
Toronto, Ontario
Aird & Berlis LLP
W. Andrew McLauchlin
Toronto, Ontario
McLauchlin & Associates
Rick H. Shaban
Toronto, Ontario
Borden Ladner Gervais LLP (BLG)
Lena Wang
Toronto, Ontario
Glaholt Bowles LLP
Richard G.C. Wong
Toronto, Ontario
Osler, Hoskin & Harcourt LLP
Repeatedly Recommended
Jeffrey A. Armel
Toronto, Ontario
Koskie Minsky LLP
Denise L. Bambrough
Toronto, Ontario
Borden Ladner Gervais LLP (BLG)
Daniel A. Boan
Toronto, Ontario
Borden Ladner Gervais LLP (BLG)
Howard Borlack
Toronto, Ontario
McCague Borlack LLP
Natasha Carew
Toronto, Ontario
Gowling WLG
Mark Crane
Toronto, Ontario
Gowling WLG
Kenneth P. Eccleston
Toronto, Ontario
Eccleston LLP
Jesse Gardner
Toronto, Ontario
Singleton Urquhart Reynolds Vogel LLP
Catherine Gleason-Mercier
Toronto, Ontario
Singleton Urquhart Reynolds Vogel LLP
Jonathan A. Goode
Toronto, Ontario
Torkin Manes LLP
Glenn Grenier
Toronto, Ontario
McMillan LLP
Aaron I. Grossman
Toronto, Ontario
Lenczner Slaght
Andrew Gurlesky
Toronto, Ontario
Construct Legal
Paul Hancock
Toronto, Ontario
Daoust Vukovich LLP
Ryan Hauk
Toronto, Ontario
Torkin Manes LLP
Joel A. Heard
Toronto, Ontario
Osler, Hoskin & Harcourt LLP
Gregory D. Hersen
Toronto, Ontario
Torkin Manes LLP
Chad Kopach
Toronto, Ontario
Blaney McMurtry LLP
Matthew B. Lerner
Toronto, Ontario
Lenczner Slaght
James Little
Toronto, Ontario
Singleton Urquhart Reynolds Vogel LLP
Jeffrey J. Long
Toronto, Ontario
Koskie Minsky LLP
Andrew A. Lundy
Toronto, Ontario
Lundy Levy Eski Baum
Edward Lynde
Toronto, Ontario
Fasken Martineau DuMoulin LLP
James W. MacLellan
Toronto, Ontario
Borden Ladner Gervais LLP (BLG)
Alan B. Merskey
Toronto, Ontario
Cassels Brock & Blackwell LLP
Kenneth W. Movat
Toronto, Ontario
Fogler, Rubinoff LLP
Stanley Naftolin
Toronto, Ontario
Goldman Sloan Nash & Haber LLP
Lea Nebel
Toronto, Ontario
Blaney McMurtry LLP
Andrew A. Parley
Toronto, Ontario
Lenczner Slaght
Andrew Punzo
Toronto, Ontario
Borden Ladner Gervais LLP (BLG)
Daniel Resnick
Toronto, Ontario
Koskie Minsky LLP
Matthew Sammon
Toronto, Ontario
Lenczner Slaght
Rocco M. Sebastiano
Toronto, Ontario
Osler, Hoskin & Harcourt LLP
Mark St. Cyr
Toronto, Ontario
Cassels Brock & Blackwell LLP
Joshua Strub
Toronto, Ontario
Margie Strub Construction Law LLP
Michael R. Swartz
Toronto, Ontario
WeirFoulds LLP
Michael T. Tamblyn
Toronto, Ontario
Torkin Manes LLP
Andrew Wong
Toronto, Ontario
Osler, Hoskin & Harcourt LLP
Richard Yehia
Toronto, Ontario
Borden Ladner Gervais LLP (BLG)
Kitchener-Waterloo Leading Firms - Major Full Service
Repeatedly Recommended
Gowling WLG
Kitchener-Waterloo Leading Practitioners
Repeatedly Recommended
Sahil Shoor
Kitchener-Waterloo, Ontario
Gowling WLG
London Leading Firms - Boutique Firms
Repeatedly Recommended
Advocates LLP
London Leading Practitioners
Consistently Recommended
James A. LeBer
London, Ontario
Advocates LLP
Repeatedly Recommended
Robert E. Hutton
London, Ontario
Brown Beattie O'Donovan LLP
Mississauga Leading Firms - Mid-Sized & Smaller
Most Frequently Recommended
Pallett Valo LLP
Mississauga Leading Practitioners
Most Frequently Recommended
Anna M. Esposito
Mississauga, Ontario
Pallett Valo LLP
Maria Ruberto
Mississauga, Ontario
Pallett Valo LLP
Consistently Recommended
Catherine DiMarco
Mississauga, Ontario
Pallett Valo LLP
Ottawa Leading Firms - Major Full Service
Repeatedly Recommended
Borden Ladner Gervais LLP (BLG)
Gowling WLG
Norton Rose Fulbright Canada LLP
Ottawa Leading Firms - Mid-Sized & Smaller
Consistently Recommended
Rasmussen Starr Ruddy, LLP
Ottawa Leading Practitioners
Consistently Recommended
Louis-Pierre Grégoire
Ottawa, Ontario
Gowling WLG
Dan J. Leduc
Ottawa, Ontario
Soloway Wright LLP
Vaughan Leading Firms - Mid-Sized & Smaller
Consistently Recommended
Drudi, Alexiou, Kuchar LLP
Vaughan Leading Practitioners
Most Frequently Recommended
Marco Drudi
Vaughan, Ontario
Drudi, Alexiou, Kuchar LLP
Consistently Recommended
Paul Guaragna
Vaughan, Ontario
Miller Thomson LLP
Repeatedly Recommended
Dražen F. Bulat
Vaughan, Ontario
Miller Thomson LLP
Lawyer to Watch
Lori Goldberg
Vaughan, Ontario
Miller Thomson LLP
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