Major revisions to Construction Act processes under Bill 60
AI Article Summary
The Ontario government has introduced amendments to the Construction Act under Bill 60, impacting contractors by streamlining holdback releases and clarifying termination rules. The changes decouple annual holdback releases from lien expiry, allowing for more predictable cash flow while maintaining the broader lien framework. Public-private partnerships remain protected under pre-existing agreements, reducing potential disruption for ongoing multi-year projects. These changes aim to enhance project delivery efficiency and decrease disputes over lien rights.
What This Means for Canadian Contractors
For Canadian builders, this means increased clarity in financial planning and contract management, especially for long-term infrastructure and civil projects. The decoupling of holdback release from lien expiry can improve cash flow, making it easier to maintain financial health over extended project timelines. This also implies that contractors may need to adapt their practices to align with the new timelines and requirements, potentially influencing cost management strategies.
