Reynolds and Vogel Make Case for a New Vision for the Ontario Lien Act

A few weeks after the release of their groundbreaking report to Attorney General Yasir Naqvi, the authors Bruce Reynolds and Sharon Vogel addressed the October 24 forum on the proposals hosted by the Construction Design and Alliance of Ontario.

The 400-page report includes 100 recommendations that include scrapping the old construction Lien Act and replacing it with "The Construction Act: an Act Respecting Security of Payment and Efficient Dispute Resolution in the Construction Industry."

It is proposed that the new Act be built around three focal points: Promptness of Payment; Efficiency of Dispute Resolution; and Modernization of the Act.

The industry has spent the past few weeks examining the details of the recommendations and trying to assess if it addresses the issues, is it balanced and is such a massive change even feasible in Ontario?

The answer appears to be yes as a big picture solution with many of the fine points to be worked out.

The CDAO event also featured presentations from major players in the reform proposal. OGCA's First Vice Chairman Paul Raboud presented the general contractor's perspective. He expressed general support for the proposal and used a number of examples to demonstrate how it is superior to the existing legislation or to Bill 69. He also explained that the proposed timelines concerning notice periods for right to withhold payment can be problematic and must be addressed.

OGCA representatives will meet with Attorney General Naqvi on October 26, to offer support for the proposal and the need to address outstanding issues.

A summary of the recommendations is posted on the OGCA website.