The Government of Ontario has long recognized that the construction industry is a volatile industry requiring some measure of protection for those companies and individuals supplying labour and materials to job sites. In 1983, the Government enacted the Construction Lien Act to replace the Mechanic’s Lien Act. The effective dates of the new Construction Act (“The Act”) are:

  • July 1, 2018 – Amendments to liens and hold-back rules
  • October 1, 2019 – Amendments dealing with prompt payment, adjudication and municipalities

The Act represents a complete overhaul of the Construction Lien Act which was enacted in 1983, with only minimal amendments having been made since then. Prompt payment and adjudication are brand new substantive regimes introduced for the first time in the Act. The Act is a creature of the legislature and creates a procedural scheme designed to have disputes resolved in a more summary fashion than is ordinarily available. It allows for those having a direct contract with one another to have their rights and responsibilities defined but also provides rights and responsibilities for those in the construction pyramid, even where a direct contract is not found.


The following guide was created by the seven partner associations of Link2Build Ontario to help their members to understand and adapt to the newly launched Act. View it below, or click here to view and save the PDF.

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