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Construction Act

ONTARIO REGULATION 304/18

GENERAL

Consolidation Period: From July 1, 2018 to the e-Laws currency date.

Last amendment: 304/18.

Legislative History: 304/18.

This is the English version of a bilingual regulation.

Interpretation

Definition

1. In this Regulation,

“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.

Note: Section 4 comes into force on October 1, 2019, the day section 7 of the Construction Lien Amendment Act, 2017 comes into force. (See: O. Reg. 304/18, s. 16 (2))

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

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 section 27.1 of the Act (Form 6) in a construction trade newspaper.

(2) For the purposes of clause 27.1 (b) 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.

Note: On October 1, 2019, the day subsection 11 (1) of the Construction Lien Amendment Act, 2017 comes into force, subsection 7 (2) of the Regulation is amended by striking out “clause 27.1 (b)” and substituting “clause 27.1 (1) (b)”. (See: O. Reg. 304/18, s. 14 (1))

Note: On October 1, 2019, the day subsection 11 (1) of the Construction Lien Amendment Act, 2017 comes into force, section 7 of the Regulation is amended by adding the following subsections: (See: O. Reg. 304/18, s. 14 (2))

(2.1) If the owner provides notice to the contractor in accordance with subsection (2), then notice for the purposes of clause 27.1 (2) (c) 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. 304/18, s. 14 (2).

(2.2) If the contractor provides notice to a subcontractor in accordance with subsection (2.1), then notice for the purposes of clause 27.1 (3) (c) 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. 304/18, s. 14 (2).

(2.3) If a subcontractor provides notice to another subcontractor in accordance with subsection (2.2), then notice for the purposes of subsection 27.1 (4) of the Act shall be provided no later than three days after receipt of the notice from the subcontractor, and shall be accompanied by a copy of the notice from the subcontractor. O. Reg. 304/18, s. 14 (2).

(3) Notice to a contractor under section 27.1 of the Act shall be provided in writing, and may be provided in electronic or paper format.

Note: On October 1, 2019, the day subsection 11 (1) of the Construction Lien Amendment Act, 2017 comes into force, subsection 7 (3) of the Regulation is amended by adding “or subcontractor” after “contractor”. (See: O. Reg. 304/18, s. 14 (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 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.

Claim for lien copy given to Crown office

11. The office of the Crown to which a copy of a claim for lien 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. If the contract is with the Ontario Mortgage and Housing Corporation, the office of the Director of Legal Services of the Ministry of the Minister responsible for the administration of the Ontario Mortgage and Housing Corporation Act.

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.

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.

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. Omitted (provides for amendments to this Regulation).

15. Omitted (revokes other Regulations).

16. Omitted (provides for coming into force of provisions of this Regulation).

 

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