
Rob Kennaley
February 26, 2025
Bill 216 – An Act to implement Budget measures and to enact and amend various statutes was passed into law on November 7, 2024, as part of an “omnibus” bill which contained amendments to 17 pieces of Ontario legislation. It will change Ontario’s Construction Act in significant ways and of the changes will be controversial. They were made further to recommendations made by Duncan Glaholt, a very well-known construction lawyer, arbitrator and author, in his 110 page Report, The 2024 Independent Review: Updating the Construction Act. While the Report most often summarized the views of various stakeholders Mr. Glaholt had consulted with, it did not propose actual legislative language for the changes.
The changes will come into force on a future date “to be named by proclamation”. In the meantime, Mr. Glaholt and others are also working on changes to the Regulations passed under the Act, which will introduce even further changes.
To put the changes in context, by way of the Construction Lien Act Amendment Act, 2017 1 , the name of the Construction Lien Act was changed to the Construction Act, lien expiry triggers and time-frames were changed, holdback provisions were significantly altered and sweeping new prompt payment and adjudication provisions were introduced. The changes were made further to recommendations made by Bruce Reynolds and Sharon Vogel in their Report, Striking the Balance: Expert Review of Ontario’s Construction Lien Act 2. It was
1 SO 2017, C24
2 Report Prepared for the Ministry of the Attorney General and the Ministry of Economic Development, Employment and Infrastructure, Delivered April 30, 2016)further to a Reynolds and Vogel recommendation that Mr. Glaholt was retained to further review the Act.
Curiously, Bill 216 passed first reading in Ontario’s Legislative Assembly without debate on the same day Mr. Glaholt released his Report. Within a week, it had passed second and third reading and received Royal Assent, all without comment or debate about the Construction Act portions. The Act’s amendments were thus presented to the Legislature and passed into law before stakeholders had any opportunity to review or comment on whether the Report or the actual wording of the legislative changes. In addition, it does not appear that some of the more significant changes were discussed with stakeholders.
Continue reading the full Kennaley Construction Law report here