If you’re involved in construction in the Kawarthas, whether you’re an owner, contractor, subcontractor, engineer, architect or someone in between, it can be hard to keep up with all the complex rules that govern your construction project.
It might shock you to know that the same rules that govern a big infrastructure project also apply to your custom home build.
Understanding these rules are important because they establish when your project is complete, how and when you get paid, and what happens if there’s a dispute.
We hope this overview of the Construction Act can set the guideposts for your project.
What Is the Ontario Construction Act?
The Construction Act is the main law in Ontario that sets out the rights and responsibilities of everyone involved in a construction project. It covers things like payment timelines, how to make a claim if you’re not paid, and how to resolve disputes.
What Happened to the Construction Lien Act?
Before 2018, this law was called the Construction Lien Act. In 2018, Ontario made significate updates to the Act including to rename it to the Construction Act. The changes were made to modernize the law and make sure money flows more smoothly on construction projects.
What Changed and Why?
When the Ontario government made changes starting in 2018, the main goals of the new Construction Act were:
- Payment on Time: The Act sets strict deadlines for payments so that money moves quickly from owners to contractors and subcontractors.
For example, Owners must pay contractors within 28 days of getting a proper invoice. Contractors then have 7 days to pay their sub-contractors.
- Reduce and Streamline disputes, cutting down Delays: The Act introduces an alternative and faster way to resolve payment disagreements called Adjudication. Hopefully so that parties can avoid having to wait months or years for a court decision.
New Expanded Access to Adjudication: the Ontario Government recently, starting January 1, 2026, expanded access to this alternative process, even permitting these payment disputes to be adjudicated after the project is complete; something that was not possible before.
However, access is not unlimited, and payment disputes have to be commenced this way within ninety days of completion – speak to a lawyer quickly!
Why Does This Matter? What about Construction Liens?
The construction lien is a blunt instrument. A lien might be useful in some instances, but is often cumbersome and inefficient in others.
As Ontario continues to modernize the Construction Act, implementing business changes to reflect these updates are crucial parts to working on or managing any construction project.
This post is the first in a series exploring the recent changes to Ontario’s Construction Act. In upcoming blogs, we’ll dive deeper into topics like prompt payment, holdback releases, and practical tips for navigating the new rules. Stay tuned!
More information? We’re here to help – litigation@wardlegal.ca This WARDS LAWYERS PC publication is for general information only. It is not legal advice, nor is it intended to be. Specific or more information may be necessary before advice could be provided for your particular circumstances.