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Construction Act
GENERAL
Consolidation Period: From June 24, 2024 to the e-Laws currency date.
Last amendment: 260/24.
Legislative History: 304/18, 112/19, 232/21, 260/24.
This is the English version of a bilingual regulation.
CONTENTS
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Definition |
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Forms |
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Surety bonds, minimum coverage |
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Notices of non-payment |
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Payment of holdback on annual basis |
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Payment of holdback on phased basis |
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Non-payment of holdback |
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Notice of contract termination |
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Certificate, declaration of substantial performance |
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Notice of intention to register condominium |
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Claim for lien copy given to Crown office |
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Claim for lien copy given to municipal clerk |
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Application of s. 85.1 of the Act |
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Coverage limit |
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Non-application of Parts I.1 and II.1 |
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Definition
“construction trade newspaper” means a newspaper,
(a) that is published either in paper format with circulation generally throughout Ontario or in electronic format in Ontario,
(b) that is published at least daily on all days other than Saturdays and holidays,
(c) in which calls for tender on construction contracts are customarily published, and
(d) that is primarily devoted to the publication of matters of concern to the construction industry.
Forms
2. In this Regulation, when a form is referred to by number, the reference is to the form as prescribed by Ontario Regulation 303/18 (Forms) made under the Act.
Alternative Financing and Procurement Arrangements
Surety bonds, minimum coverage
3. For the purposes of paragraph 2 of subsection 1.1 (4) of the Act, the minimum coverage limit is,
(a) 50 per cent of the contract price, if the contract price is $100,000,000 or less; or
(b) $50,000,000, if the contract price is more than $100,000,000. O. Reg. 304/18, s. 3; O. Reg. 260/24, s. 1.
Notices of non-payment
4. Notices of non-payment under Part I.1 of the Act (Forms 1.1 to 1.5) may be provided in electronic or paper format.
Payment of holdback on annual basis
5. For the purposes of clause 26.1 (2) (c) of the Act, the contract price must be $10,000,000 or more.
Payment of holdback on phased basis
6. For the purposes of clause 26.2 (2) (b) of the Act, the contract price must be $10,000,000 or more.
Non-payment of holdback
7. (1) An owner shall publish a notice of non-payment of a holdback under subsection 27.1 (1) of the Act (Form 6) in a construction trade newspaper. O. Reg. 112/19, s. 1.
(2) For the purposes of subsection 27.1 (1) of the Act, the owner shall, no later than three days after publication of the notice of non-payment, notify the contractor of its publication. O. Reg. 112/19, s. 1.
(3) If the owner provides notice to the contractor in accordance with subsection (2), then notice for the purposes of subsection 27.1 (2) of the Act shall be provided no later than three days after receipt of the notice from the owner, and shall be accompanied by a copy of the notice from the owner. O. Reg. 112/19, s. 1.
(4) If the contractor provides notice to a subcontractor in accordance with subsection (3), then notice for the purposes of subsection 27.1 (3) of the Act shall be provided no later than three days after receipt of the notice from the contractor, and shall be accompanied by a copy of the notice from the contractor. O. Reg. 112/19, s. 1.
(5) Subsection (4) applies with necessary modifications if a subcontractor provides notice to another subcontractor in accordance with that subsection. O. Reg. 112/19, s. 1.
(6) Notice to a contractor or subcontractor under section 27.1 of the Act shall be provided in writing, and may be provided in electronic or paper format. O. Reg. 112/19, s. 1.
Expiry, Preservation and Perfection of Liens
Notice of contract termination
8. A notice of termination under subsection 31 (6) of the Act (Form 8) shall be published in a construction trade newspaper.
Certificate, declaration of substantial performance
9. A certificate of substantial performance (Form 9) or declaration of substantial performance under section 32 of the Act shall be published in a construction trade newspaper.
Notice of intention to register condominium
10. A notice of intention to register land described in a description in accordance with the Condominium Act, 1998 under section 33.1 of the Act (Form 11) shall be published in a construction trade newspaper at least five and not more than 15 days, excluding Saturdays and holidays, before the description is submitted for approval under subsection 9 (3) of the Condominium Act, 1998. O. Reg. 304/18, s. 10; O. Reg. 112/19, s. 2.
Claim for lien copy given to Crown office
11. The office of the Crown to which a copy of a claim for lien (Form 12) must be given under subsection 34 (3) of the Act is as follows:
1. If the contract is with a ministry of the Crown, the office of the Director of Legal Services of that ministry.
2. Revoked: O. Reg. 232/21, s. 1.
3. If the contract is with a college of applied arts and technology, the office of the president of the college.
4. If the contract is with any other office of the Crown, the office of the chief executive officer of that office. O. Reg. 304/18, s. 11; O. Reg. 112/19, s. 3; O. Reg. 232/21, s. 1.
Claim for lien copy given to municipal clerk
11.1 (1) A municipality may provide for the giving of a copy of a claim for lien (Form 12) to the clerk of the municipality under subsection 34 (3.1) of the Act through one or both of the following methods by publishing on its website a statement to that effect that details the method or methods:
1. Sending a copy of the claim for lien by email to a specified email address.
2. Completing and submitting the claim for lien through a specified web portal. O. Reg. 112/19, s. 4.
(2) If a municipality details a method in accordance with subsection (1), a copy of a claim for lien shall be given to the clerk of the municipality in accordance with that method. O. Reg. 112/19, s. 4.
(3) A copy of a claim for lien that is given in accordance with subsection (2) after 5 p.m. local time is deemed to have been given on the following business day. O. Reg. 112/19, s. 4.
Application of s. 85.1 of the Act
12. Section 85.1 of the Act applies to a public contract if the contract price is $500,000 or more.
Note: On July 1, 2024, the day subsection 2 (1) of Schedule 2 to the Building a Strong Ontario Together Act (Budget Measures), 2023 comes into force, the Regulation is amended by adding the following section immediately before the heading “Nuclear Facilities”: (See: O. Reg. 260/24, s. 2)
Coverage limit
12.1 (1) Except as otherwise provided in this section, the minimum coverage limit for a labour and material payment bond required by subsection 85.1 (4) of the Act or a performance bond required by subsection 85.1 (5) of the Act is 50 per cent of the contract price. O. Reg. 260/24, s. 2.
(2) If a public contract has a contract price that is more than $500,000,000, the coverage limit shall be the amount specified by the owner, which must be at least $250,000,000. O. Reg. 260/24, s. 2.
(3) Subsection (2) does not apply unless the labour and material payment bond, performance bond and any other security required by the owner, taken together, would reflect an appropriate balance between the adequacy of the security required to ensure, on the one hand, the payment of persons supplying services or materials under the public contract and the performance of the public contract and, on the other hand, the cost of the security. O. Reg. 260/24, s. 2.
Non-application of Parts I.1 and II.1
13. Parts I.1 and II.1 of the Act do not apply to contracts for improvements to land used in connection with a Class I nuclear facility as defined in SOR/2000-204 (Class I Nuclear Facilities Regulation) made under the Nuclear Safety and Control Act (Canada), or to subcontracts made under such contracts.
14. Revoked: O. Reg. 112/19, s. 5.
15. Omitted (revokes other Regulations).
16. Omitted (provides for coming into force of provisions of this Regulation).