OGCA Supports Proposals to Overhaul Lien Act
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The Report recently issued by the Ontario Attorney General proposes a massive overhaul to existing practices after finding that disputes and payment delays are impeding the industries effectiveness and creating needlessly delays.
The 3 major components of the proposal are Modernization of the Act, Promptness of Payments and Binding Adjudication on Disputes.
OGCA found the proposal for prompt payment to be superior to the Bill 69 solution in that it preserves the right to contract, and adjudication will assure payments are made and work continues.
The proposal will require that disputes are addressed quickly through legislative timelines by being referred to an adjudication process. Details of the operation of the process and the appointment of adjudicators is one of the many details to be worked out in the legislative process.
Minister Naqvi has a mandate to introduce legislation in the spring 2017 Session. OGCA has identified numerous issues that need to be addressed before legislation is drafted. We will be recommending that a further consultation process be held after 1st reading of the Legislation is released, to assure the intent of the amendments is maintained.
OGCA will meet with Minister Naqvi soon to discuss the proposal and the process.
