{"id":44588,"date":"2018-01-11T09:01:00","date_gmt":"2018-01-11T14:01:00","guid":{"rendered":"https:\/\/groupeagf.com\/en\/the-network\/uncategorized\/construction-lien-amendment-act-ontario"},"modified":"2024-05-07T15:30:03","modified_gmt":"2024-05-07T19:30:03","slug":"construction-lien-amendment-act-ontario","status":"publish","type":"post","link":"https:\/\/groupeagf.com\/en\/the-network\/general-interest\/construction-lien-amendment-act-ontario","title":{"rendered":"Construction lien Amendment Act (Ontario)"},"content":{"rendered":"<div>\n<p><em>With the contribution of Geraldine Raedemaeker, Communication Advisor.&nbsp;<\/em><\/p>\n<p style=\"font-size:14px; font-style:italic\">Sources:&nbsp;<a href=\"https:\/\/mcac.ca\/prompt-payment\/\" target=\"_blank\" rel=\"noopener\">The Mechanical Contractors Association of Canada<\/a>&nbsp;and&nbsp;<a href=\"http:\/\/www.promptpayment.ca\/wp-content\/uploads\/2015\/08\/Need-for-a-Federal-Prompt-Payment-Act.pdf\" target=\"_blank\" rel=\"noopener\">The National Trade Contractors Coalition of Canada<\/a>.<\/p>\n<p>You may have heard in the News that the Construction Lien Amendment Act has recently passed in Ontario.<\/p>\n<h3>What&rsquo;s it all about?<\/h3>\n<p>In Canada&rsquo;s construction industry, as in other countries, payment delays have serious and negative effects on business and the efficiency of the construction sector.&nbsp;<\/p>\n<p>For instance:<\/p>\n<ul>\n<li>If a trade contractor needs higher cash flow and payment is late, he cannot hire more people, resulting in fewer hires.<\/li>\n<li>It can sometimes lead to a decrease in funds allocated to training and apprenticeships because contractors are more focused on short-term employment commitments.<\/li>\n<li>With the risk of late payment, some trade contractors are less willing to invest in new machinery and equipment. The consequence is lower productivity and higher construction costs.<\/li>\n<li>Federal government construction costs rise because trade contractors factor the risk of late payment by general contractors into their bids.<\/li>\n<li>Fewer companies are bidding on government projects because of late-payment risk. The costs of federal construction work therefore increase because competition is reduced.<\/li>\n<\/ul>\n<p>&ldquo;The difficulty with the construction industry&rsquo;s payment system is that it is highly vulnerable to freeze-ups. When any party in the payment structure withholds or delays payment on a valid invoice, their action freezes the flow of funds to all levels of the pyramid that are subordinate to them. (&hellip;) In many cases, Trade Contractors are contractually obliged to continue working on a project, even when the payments owed to them have been delayed&rdquo;. (Source: <a href=\"http:\/\/www.promptpayment.ca\/wp-content\/uploads\/2015\/08\/Need-for-a-Federal-Prompt-Payment-Act.pdf\" target=\"_blank\" rel=\"noopener\">The Need for a Prompt Payment Act in Federal Government Construction, by National Trade Contractors Coalition of Canada<\/a>)<\/p>\n<h3>What does the new law bring?<\/h3>\n<p>There are three main components in Bill 142.<\/p>\n<p style=\"margin-left:40px\">1) Some of the main sections of the Lien Act are being modernized:<\/p>\n<p>&bull; The deadline for registering a lien is extended from 45 to 60 days in order to better coordinate the preservation period with standard payment terms within the industry.<\/p>\n<p>&bull; Payment of the 10% holdback will be mandatory once lien rights expire, unless the payer delivers a notice of non-payment.<\/p>\n<p>&bull; The deadline for finalizing a claim for lien is extended by an additional 45 days to encourage early settlement of lien claims.<\/p>\n<p style=\"margin-left:40px\">&nbsp;2) Prompt payment &nbsp;<\/p>\n<p>&bull; An owner must pay a contractor within 28 days of receiving a &ldquo;proper invoice,&rdquo; unless the owner delivers a notice of non-payment within 14 days of receiving a &ldquo;proper invoice.&rdquo;<\/p>\n<p>&bull; A contractor who receives full payment from an owner must pay any subcontractor whose work was included in the contractor&#8217;s &ldquo;proper invoice&rdquo; to the owner within seven days of the date they receive payment, unless the contractor gives a notice of non-payment to the subcontractor detailing the reasons for non-payment.<\/p>\n<p style=\"margin-left:40px\">3) Adjudication &nbsp;<\/p>\n<p>&bull; Bill 142 will give parties to a contract or subcontract the right to have certain types of disputes resolved on an interim basis by binding adjudication.<\/p>\n<p>&bull; The adjudicator&#8217;s ruling will be binding and enforceable, but only on an interim basis. Any party is free to re-litigate a dispute before a judge or an arbitrator, who may decide the case differently than the adjudicator.<\/p>\n<h3>What does this mean for AGF?<\/h3>\n<p>As a company focused on growth, AGF is concerned by the above-mentioned laws, which could have a positive impact on late payment issues.<\/p>\n<p>Let&rsquo;s hope this legislation in Ontario will inspire other provinces to update their own legislature in order to protect the financial security of all Canadians.<\/p>\n<p><img decoding=\"async\" alt=\"\" src=\"https:\/\/groupeagf.com\/wp-content\/uploads\/2024\/05\/Ligne_bleue_separation_version_e-2067.jpg\" style=\"height:67px; width:400px\" title=\"\"><\/p>\n<h2>Ley de enmienda del derecho de retenci&oacute;n en la construcci&oacute;n<\/h2>\n<p style=\"font-size:14px; font-style:italic\">Fuentes:&nbsp;<a href=\"https:\/\/mcac.ca\/prompt-payment\/\" target=\"_blank\" rel=\"noopener\">The Mechanical Contractors Association of Canada<\/a> and&nbsp;<a href=\"http:\/\/www.promptpayment.ca\/wp-content\/uploads\/2015\/08\/Need-for-a-Federal-Prompt-Payment-Act.pdf\" target=\"_blank\" rel=\"noopener\">The National Trade Contractors Coalition of Canada<\/a><\/p>\n<p>Tal vez haya escuchado en las noticias que recientemente se aprob&oacute; en Ontario la Ley de enmienda del derecho de retenci&oacute;n en la construcci&oacute;n (Construction Lien Amendment Act).<\/p>\n<h3>&iquest;De qu&eacute; se trata?<\/h3>\n<p>En la industria de la construcci&oacute;n canadiense, como en los dem&aacute;s pa&iacute;ses, los retrasos en los pagos tienen efectos serios y negativos en los negocios y en la eficiencia del sector de la construcci&oacute;n.<\/p>\n<p>Por ejemplo:&nbsp;<\/p>\n<p>1. Como un contratista especializado necesita m&aacute;s flujo de efectivo, con los pagos retrasados no puede contratar m&aacute;s gente. La contrataci&oacute;n es m&aacute;s peque&ntilde;a.&nbsp;<\/p>\n<p>2. Algunas veces puede causar una disminuci&oacute;n de los fondos dedicados a la capacitaci&oacute;n y la formaci&oacute;n porque los contratistas est&aacute;n m&aacute;s centrados en los compromisos de empleo a corto plazo.<\/p>\n<p>3. Con el riesgo de pago retrasado, algunos contratistas especializados est&aacute;n menos dispuestos a invertir en nueva maquinaria y equipo. La consecuencia de esto es menor productividad y un incremento de los costos de construcci&oacute;n.<\/p>\n<p>4. Los costos de construcci&oacute;n del gobierno federal incrementan porque los contratistas especializados incorporan un factor en sus licitaciones para reflejar el riesgo de pago retrasado de los contratistas generales.<\/p>\n<p>5. Menos empresas realizan licitaciones en proyectos gubernamentales debido al riesgo de pagos retrasados. Los costos de obras de construcci&oacute;n federales est&aacute;n incrementando porque hay menor competencia.<\/p>\n<p>&ldquo;La dificultad con el sistema de pago de la industria de la construcci&oacute;n es que es muy vulnerable a paralizarse. Cuando una parte de la estructura de pago retiene o retrasa el pago de una factura v&aacute;lida, su acci&oacute;n paraliza el flujo de fondos de todos los niveles de la pir&aacute;mide debajo de esa parte. (&hellip;) En muchos casos, los contratistas especializados est&aacute;n obligados bajo contrato a seguir trabajando en un proyecto, incluso cuando los pagos que se le deben hayan sido retrasados.&rdquo;<\/p>\n<p>&nbsp;(Fuente: &ldquo;The Need for a Prompt Payment Act in Federal Government Construction, by National Trade Contractors Coalition of Canada&ldquo;)&nbsp;<\/p>\n<h3>&iquest;Qu&eacute; implica la nueva ley?<\/h3>\n<p>El proyecto de ley 142 tiene tres objetivos principales.<\/p>\n<p>1) La ley sobre el derecho de retenci&oacute;n en s&iacute; misma est&aacute; siendo modernizada en algunos de los puntos principales:<\/p>\n<p>&bull; El plazo para registrar un derecho de retenci&oacute;n se ha extendido de 45 a 60 d&iacute;as para poder coordinar mejor el periodo de preservaci&oacute;n con t&eacute;rminos de pago est&aacute;ndares en la industria.<\/p>\n<p>&bull; Una vez que venza el derecho de retenci&oacute;n, ser&aacute; obligatorio un pago del 10% como retenci&oacute;n de garant&iacute;a, a menos que el pagador entregue un aviso de falta de pago.<\/p>\n<p>&bull; El l&iacute;mite para completar una solicitud de derecho de retenci&oacute;n se extiende con 45 d&iacute;as adicionales para favorecer un pago r&aacute;pido de las solicitudes de derecho de retenci&oacute;n.<\/p>\n<p>2) Pago r&aacute;pido<\/p>\n<p>&bull; Un propietario debe pagarle a un contratista dentro de los primeros 28 d&iacute;as despu&eacute;s de haber recibido una &ldquo;factura formal&rdquo;, a menos que el propietario entregue un aviso de falta de pago dentro de los primeros 14 d&iacute;as despu&eacute;s de haber recibido la &ldquo;factura formal&rdquo;.<\/p>\n<p>&bull; Los contratistas que reciban el pago completo de un propietario deben pagarle a todos los subcontratistas cuyo trabajo est&eacute; incluido en la &ldquo;factura formal&rdquo; durante los primeros 7 d&iacute;as despu&eacute;s de la fecha en la que recibieron el pago del propietario, a menos que el contratista le entregue al subcontratista un aviso de falta de pago con los motivos por los que no realizar&aacute; el pago.<\/p>\n<p>3) Decisi&oacute;n ejecutoria<\/p>\n<p>&bull; El proyecto de ley 142 les otorga a las partes de un contrato o un subcontrato el derecho a resolver ciertos tipos de conflictos de manera provisoria por medio de una decisi&oacute;n ejecutoria.<\/p>\n<p>&bull; La resoluci&oacute;n del adjudicador es vinculante y ejecutable, pero solamente de manera provisoria. Todas las partes pueden volver a litigar un conflicto ante un juez o &aacute;rbitro quien puede resolver el caso de manera diferente.<\/p>\n<h3>&iquest;Qu&eacute; significa para AGF?<\/h3>\n<p>Siendo una empresa enfocada en el crecimiento, AGF se interesa en las leyes mencionadas, las cuales pueden tener un impacto positivo en los problemas de pagos retrasados.<\/p>\n<p>Esperemos que esta ley en Ontario inspire al resto del pa&iacute;s para actualizar sus propias leyes para proteger la seguridad financiera de todos los canadienses.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>With the contribution of Geraldine Raedemaeker, Communication Advisor.&nbsp; Sources:&nbsp;The Mechanical Contractors Association of Canada&nbsp;and&nbsp;The National [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":44583,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[217],"tags":[],"class_list":["post-44588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-interest"],"acf":[],"_links":{"self":[{"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/posts\/44588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/comments?post=44588"}],"version-history":[{"count":2,"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/posts\/44588\/revisions"}],"predecessor-version":[{"id":57273,"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/posts\/44588\/revisions\/57273"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/media\/44583"}],"wp:attachment":[{"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/media?parent=44588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/categories?post=44588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/groupeagf.com\/en\/wp-json\/wp\/v2\/tags?post=44588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}