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canada 150?
Brume Jabuoma holds an LL.M in International Business Law from Osgoode Hall Law School.
He is currently an Articling candidate with an interest in Real Estate, business transactions, and Commercial litigation. Click here for Linkedin page
•Holdbacks may be retained in the form of a letter(s) of credit, bond or any other form agreed to by the parties.
•Payment of holdback funds may now be paid on an annual basis or a phased basis as clearly identified in the governing contract between the parties.
•Subject to delivering a notice of non-payment, payment of 10% of the holdback is mandatory upon the expiration of the lien, and in the absence of a set off claim.
It proposes a quick interim adjudication which would see disputes resolved within 60 days.
Other Amendments
There are many other amendments proposed under the Construction Lien Act which will help to give effect to the intended modernization of the Act. Some of these include
•Treating lands owned by municipalities, local boards, and conservation authorities as Crown lands for the purpose of lien enforcement.
•Mandatory bonding on public and broader public sector projects where the contract price exceeds a prescribed amount.
•Expansion of the definition of public contracts to include the Crown, public corporations and broader public organizations including publically funded hospitals, school boards, universities, colleges, children aid societies, and community care access corporations.
•Many proposed amendments seem to expand the Act to include the Small Claims Courts to hear claims for lien amounts of $25,000 and under. The Bill does not however, address the Constitutional issue with such jurisdiction. Perhaps subsequent regulations under the Act may provide exhaustive guidance on how cases are referred to the Small Claims Court. If this happens, it creates a cheaper process for smaller contractors and businesses especially if cases are resolved summarily.
Status of the Bill
On May 31, 2017, the Attorney General, Yasir Naqvi, introduced the Bill and saw it through first reading. Now in the committee phase, the Bill is expected to pass second and third reading in the fall, eventually coming into force in 2018.
5 BLawyerisH/July, 2017