O. Reg. 304/18: GENERAL, Construction Act



Construction Act

ONTARIO REGULATION 304/18

GENERAL

Consolidation Period:  From January 1, 2026 to the e-Laws currency date.

Last amendment: 266/25.

Legislative History: 304/18, 112/19, 232/21, 260/24, 266/25.

This is the English version of a bilingual regulation.

CONTENTS

Interpretation

1.

Definition

2.

Forms

Alternative Financing and Procurement Arrangements

3.

Surety bonds, minimum coverage

Prompt Payment

4.

Notices of non-payment

Holdbacks

7.

Notice of annual release of holdback

Expiry, Preservation and Perfection of Liens

8.

Notice of contract termination

9.

Certificate, declaration of substantial performance

10.

Notice of intention to register condominium

11.

Claim for lien copy given to Crown office

11.1

Claim for lien copy given to municipal clerk

Surety Bonds

12.

Application of s. 85.1 of the Act

12.1

Coverage limit

Nuclear Facilities

13.

Non-application of Parts I.1 and II.1

 

Interpretation

Definition

1. In this Regulation,

“construction trade news website” means any of the following websites:

1.  The Daily Commercial News.

2.  Link2Build.

3.  Ontario Construction News. O. Reg. 304/18, s. 1; O. Reg. 266/25, s. 1.

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.

Prompt Payment

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.

Holdbacks

5., 6. Revoked: O. Reg. 266/25, s. 2.

Notice of annual release of holdback

7. An owner shall publish a notice of annual release of holdback (Form 6) on a construction trade news website. O. Reg. 266/25, s. 3.

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 on a construction trade news website. O. Reg. 304/18, s. 8; O. Reg. 266/25, s. 4.

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 on a construction trade news website. O. Reg. 304/18, s. 9; O. Reg. 266/25, s. 4.

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 on a construction trade news website 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; O. Reg. 266/25, s. 4.

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.

Surety Bonds

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.

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.

Nuclear Facilities

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).