1.1 (1) This section applies if the Crown, a municipality or a broader public sector organization, as the owner of a premises, enters into a project agreement with a special purpose entity that requires the entity to finance and undertake an improvement on behalf of the Crown, municipality or broader public sector organization, as the case may be, and, for the purpose, to enter into an agreement with a contractor in respect of the improvement. 2017, c. 24, s. 3 (1). Application of Act, regulations (2) Except as provided by this section, this Act and the regulations apply, with the modifications set out in this section and any other necessary modifications, (a)  to a project agreement between the Crown, a municipality or a broader public sector organization and a special purpose entity as if the project agreement were a contract and the special purpose entity were the contractor; and (b)  to the agreement between the special purpose entity and the contractor as if the agreement were a subcontract made under the contract. 2017, c. 24, s. 3 (1). Specified modifications, Part I.1 (2.1) Part I.1 applies with the following modifications: 1.  The Part does not apply with respect to any portion of a project agreement that provides for the operation or maintenance of the improvement by the special purpose entity, or to any portion of an agreement between the special purpose entity and the contractor or any other subcontract made under the project agreement that pertains to the operation or maintenance of the improvement by the special purpose entity. 2.  Subsection 6.3 (2) does not apply, and nothing in the Part shall be read as preventing the inclusion, in a project agreement or agreement between a special purpose entity and a contractor, of a provision requiring certification or approval prior to the giving of a proper invoice. 2017, c. 24, s. 3 (2). Specified modifications, Part II.1 (2.2) Part II.1 applies with the following modifications: 1.  The following matters may not be the subject of an adjudication under the Part: i.  A determination of when, A.  a project agreement is substantially completed, or B.  an agreement between a special purpose entity and a contractor is substantially performed, as provided under subsection (5). ii.  A determination of whether a milestone in relation to the improvement has been reached, if reaching the milestone requires an amount to be paid. iii.  Any prescribed matters. 2.  If the parties to a project agreement are the parties to an adjudication and the project agreement specifies an independent certifier, the parties shall, provided that a representative of the independent certifier is listed as an adjudicator in the registry established under clause 13.3 (1) (c), request that the representative conduct the adjudication, in which case subsections 13.9 (2) and (3) do not apply. 2017, c. 24, s. 3 (2). Specified modifications, Part IV (3) For the purposes of section 22, holdback amounts shall be determined in reference to the agreement between the special purpose entity and the contractor. 2017, c. 24, s. 3 (1). Specified modifications, Part XI.1 (4) Section 85.1 applies with the following modifications: 1.  The agreement between the special purpose entity and the contractor is deemed, for the purposes of the section, to be a public contract between the Crown, municipality or broader public sector organization, as the case may be, and the contractor. 2.  The Crown, municipality or broader public sector organization, as the case may be, may require a coverage limit other than one specified in clause 85.1 (4) (b) or (5) (b), provided that it meets or exceeds any coverage limit that may be prescribed for the purposes of this paragraph. Note: On a day to be named by proclamation of the Lieutenant Governor, paragraph 2 of subsection 1.1 (4) of the Act is amended by striking out “specified in” and substituting “provided for under”. (See: 2023, c. 21, Sched. 2, s. 1) 3.  Paragraph 2 does not apply unless the bonds required under subsections 85.1 (4) and (5) and any other security required by the Crown, municipality or broader public sector organization, as the case may be, taken together, reflect an appropriate balance between the adequacy of the security required to ensure the payment of persons supplying services or materials under the public contract on the one hand and the cost of the security on the other. 2017, c. 24, s. 3 (1). Where entity deemed to be owner (5) The special purpose entity is deemed to be the owner of the premises in place of the Crown, municipality or broader public sector organization, and the agreement between the special purpose entity and the contractor is deemed to be the contract, for the purposes of the following portions and provisions of this Act and any regulations made for the purposes of them and, for the purpose, the portions, provisions and regulations apply with such modifications as may be prescribed and any other necessary modifications: 1.  Subsections 2 (1) and (2). 2.  Section 31. 3.  Section 32. 4.  Section 33. 5.  Section 39. 6.  Any other portion or provision that may be prescribed. 2017, c. 24, s. 3 (1). Interpretation, substantial performance of a contract (6) For the purposes of subsection (5), a reference in this Act or the regulations to the substantial performance of a contract, as it applies in relation to a project agreement, shall be read as a reference to the substantial performance of the agreement between the special purpose entity and the contractor, subject to any exceptions that may be prescribed. 2017, c. 24, s. 3 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 3 (1) - 01/07/2018; 2017, c. 24, s. 3 (2)
- 01/10/2019 2023, c. 21, Sched. 2, s. 1 - not in force Contracts, substantial performance and completion