On October 1, 2019, the prompt payment and adjudication regime of the Construction Act (the “Act”) came into force to improve payment and cashflow to contractors on construction projects. The changes apply to any contract between a contractor and property owner for the supply of services or materials for any alteration, addition or capital repair to the land (among other work). Any condo who is party to such a contract is subject to the “28-7-7-7” prompt payment clock and adjudication regime.
The changes also amended traditional construction lien legislation, including the deadlines to preserve and perfect a lien and holdback releases.
This is Part I of our two-part series, where we explore how these changes impact construction contracts, specifically the CCDC 2 Stipulated Price Contract, and projects at condos now that we have had about 1.5 years (and a pandemic!) to reflect on it.