jswizzle3737/ontario_laws_and_regs huggingface dataset:
2 (1) For the purposes of this Act, a contract is substantially performed, (a)  when the improvement to be made under that contract or a substantial part thereof is ready for use or is being used for the purposes intended; and (b)  when the improvement to be made under that contract is capable of completion or, where there is a known defect, correction, at a cost of not more than, (i)  3 per cent of the first $1,000,000 of the contract price, (ii)  2 per cent of the next $1,000,000 of the contract price, and (iii)  1 per cent of the balance of the contract price.  R.S.O. 1990, c. C.30, s. 2 (1); 2017, c. 24, s. 4 (1, 2). Same (2) For the purposes of this Act, where the improvement or a substantial part thereof is ready for use or is being used for the purposes intended and the owner and the contractor agree not to complete the improvement expeditiously, the price of the services or materials remaining to be supplied and required to complete the improvement shall be deducted from the contract price in determining substantial performance.  R.S.O. 1990, c. C.30, s. 2 (2); 2017, c. 24, s. 4 (3), 66. Adjudication amounts (2.1) For the purposes of this Act, if an adjudicator makes a determination under Part II.1 in relation to a contract before the certification or declaration of the substantial performance of the contract under section 32, (a)  any amount determined by the adjudicator to be payable by a party to the contract shall be added to the contract price in determining substantial performance; and (b)  any amount determined by the adjudicator to have been overpaid by a party to the contract shall be deducted from the contract price in determining substantial performance. 2017, c. 24, s. 4 (4). Same (2.2) Subsection (2.1) ceases to apply if, (a)  the adjudicator’s determination ceases to be binding on the parties to the adjudication under section 13.15; or (b)  the determination of the adjudicator is set aside on judicial review. 2017, c. 24, s. 4 (4). When contract deemed completed (3) For the purposes of this Act, a contract shall be deemed to be completed and services or materials shall be deemed to be last supplied to the improvement when the price of completion, correction of a known defect or last supply is not more than the lesser of, (a)  1 per cent of the contract price; and (b)  $5,000.  R.S.O. 1990, c. C.30, s. 2 (3); 2017, c. 24, s. 4 (5, 6). Multiple improvements under a contract (4) If more than one improvement is to be made under a contract and each of the improvements is to lands that are not contiguous, then, if the contract so provides, each improvement is deemed for the purposes of this section to be under a separate contract. 2017, c. 24, s. 4 (7). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 4 (1-3, 6, 7) - 01/07/2018; 2017, c. 24, s. 4 (4)
- 01/10/2019; 2017, c. 24, s. 4 (5), 66
- 12/12/2017 Part i    GENERAL
3 (1) Subject to section 16 (where lien does not attach to the premises), this Act binds the Crown.  R.S.O. 1990, c. C.30, s. 3 (1); 2017, c. 24, s. 70. (2) Repealed: 2017, c. 24, s. 5. Exception re notice of claim (3) Section 18 of the Crown Liability and Proceedings Act, 2019 does not apply in respect of an action against the Crown under this Act.  R.S.O. 1990, c. C.30, s. 3 (3); 2019, c. 7, Sched. 17, s. 56. (4) Repealed:  1997, c. 23, s. 4 (1). Section Amendments with date in force (d/m/y) 1997, c. 23, s. 4 (1) - 28/11/1997 2017, c. 24, s. 5, 70 - 12/12/2017 2019, c. 7, Sched. 17, s. 56 - 01/07/2019
4 An agreement by any person who supplies services or materials to an improvement that this Act does not apply to the person or that the remedies provided by it are not available for the benefit of the person is void.  R.S.O. 1990, c. C.30, s. 4; 2017, c. 24, s. 69. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 69 - 12/12/2017
5 (1) Every contract or subcontract related to an improvement is deemed to be amended in so far as is necessary to be in conformity with this Act.  R.S.O. 1990, c. C.30, s. 5 (1). Retention of holdbacks authorized (2) Without restricting the generality of subsection (1), where the purchaser is an owner, an agreement of purchase and sale that provides for the making or completion of an improvement shall be deemed to provide for the retention of holdbacks by the purchaser, and tender by the purchaser on closing is not defective by reason only that the purchaser does not tender the amount of the holdbacks.  R.S.O. 1990, c. C.30, s. 5 (2).
6 (1) No certificate, declaration or claim for lien is invalidated by reason only of a failure to comply strictly with subsection 32 (2), 33 (1) or 34 (5) unless, in the opinion of the court, a person has been prejudiced as a result, and then only to the extent of the prejudice suffered. 2017, c. 24, s. 6 (2); 2018, c. 17, Sched. 8, s. 2. Same (2) Minor errors or irregularities to which subsection (1) applies include, (a)  a minor error or irregularity in, (i)  the name of an owner, a person for whom services or materials were supplied or a payment certifier, (ii)  the legal description of a premises, or (iii)  the address for service; and (b)  including an owner’s name in the wrong portion of a claim for lien. 2017, c. 24, s. 6 (2). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 6 (1) - 12/12/2017; 2017, c. 24, s. 6 (2)
- 01/07/2018 2018, c. 17, Sched. 8, s. 2 - 06/12/2018 Part i.1   prompt payment
6.1 In this Part, “proper invoice” means a written bill or other request for payment for services or materials in respect of an improvement under a contract, if it contains the following information and, subject to subsection 6.3 (2), meets any other requirements that the contract specifies: 1.  The contractor’s name and address. 2.  The date of the proper invoice and the period during which the services or materials were supplied. 3.  Information identifying the authority, whether in the contract or otherwise, under which the services or materials were supplied. 4.  A description, including quantity where appropriate, of the services or materials that were supplied. 5.  The amount payable for the services or materials that were supplied, and the payment terms. 6.  The name, title, telephone number and mailing address of the person to whom payment is to be sent. 7.  Any other information that may be prescribed. 2017, c. 24, s. 7. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 7 - 01/10/2019
6.2 A requirement to pay an amount in accordance with this Part is subject to any requirement to retain a holdback in accordance with Part IV. 2017, c. 24, s. 7. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 7 - 01/10/2019
6.3 (1) Proper invoices shall be given to an owner on a monthly basis, unless the contract provides otherwise. 2017, c. 24, s. 7. Restriction on conditions (2) A provision in a contract that makes the giving of a proper invoice conditional on the prior certification of a payment certifier or on the owner’s prior approval is of no force or effect. 2017, c. 24, s. 7. Same (3) For greater certainty, subsection (2) has no application to a provision in a contract that provides for the certification of a payment certifier or the owner’s approval after a proper invoice is given. 2017, c. 24, s. 7. Exception (4) Subsection (2) does not apply to a provision in a contract that provides for the testing and commissioning of the improvement or of services or materials supplied under the contract. 2017, c. 24, s. 7. Revisions (5) A proper invoice may be revised by the contractor after the contractor has given it to the owner, if, (a)  the owner agrees in advance to the revision; (b)  the date of the proper invoice is not changed; and (c)  the proper invoice continues to meet the requirements referred to in the definition of “proper invoice” in section 6.1. 2017, c. 24, s. 7. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 7 - 01/10/2019
6.4 (1) Subject to the giving of a notice of non-payment under subsection (2), an owner shall pay the amount payable under a proper invoice no later than 28 days after receiving the proper invoice from the contractor. 2017, c. 24, s. 7. Exception, notice of non-payment if dispute (2) An owner who disputes a proper invoice may refuse to pay all or any portion of the amount payable under the proper invoice within the time specified in subsection (1) if, no later than 14 days after receiving the proper invoice from the contractor, the owner gives to the contractor a notice of non-payment, in the prescribed form and manner, specifying the amount of the proper invoice that is not being paid and detailing all of the reasons for non-payment. 2017, c. 24, s. 7. Requirement to pay remaining amount (3) Subsection (1) continues to apply to any amount payable under the proper invoice that is not the subject of a notice under subsection (2). 2017, c. 24, s. 7. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 7 - 01/10/2019 Payment deadlines, contractor to subcontractor
6.7 Reasons for non-payment in accordance with this Part may include the retention of amounts under section 12 (set-off by trustee) or under subsection 17 (3) (lien set-off). 2017, c. 24, s. 7. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 7 - 01/10/2019
6.8 Nothing in this Part in any way reduces, derogates from or alters the obligations of a contractor or subcontractor to pay wages as provided for by statute, contract or collective bargaining agreement. 2017, c. 24, s. 7. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 7 - 01/10/2019
6.9 Interest begins to accrue on an amount that is not paid when it is due to be paid under this Part, at the prejudgment interest rate determined under subsection 127 (2) of the Courts of Justice Act or, if the contract or subcontract specifies a different interest rate for the purpose, the greater of the prejudgment interest rate and the interest rate specified in the contract or subcontract. 2017, c. 24, s. 7. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 7 - 01/10/2019 Part II   TRUST PROVISIONS Owner’s trust
7 (1) All amounts received by an owner, other than the Crown or a municipality, that are to be used in the financing of the improvement, including any amount that is to be used in the payment of the purchase price of the land and the payment of prior encumbrances, constitute, subject to the payment of the purchase price of the land and prior encumbrances, a trust fund for the benefit of the contractor.  R.S.O. 1990, c. C.30, s. 7 (1). Amounts certified as payable (2) Where amounts become payable under a contract to a contractor by the owner on a certificate of a payment certifier, an amount that is equal to an amount so certified that is in the owner’s hands or received by the owner at any time thereafter constitutes a trust fund for the benefit of the contractor.  R.S.O. 1990, c. C.30, s. 7 (2). Where substantial performance certified (3) Where the substantial performance of a contract has been certified, or has been declared by the court, an amount that is equal to the unpaid price of the substantially performed portion of the contract that is in the owner’s hands or is received by the owner at any time thereafter constitutes a trust fund for the benefit of the contractor.  R.S.O. 1990, c. C.30, s. 7 (3). Obligations as trustee (4) The owner is the trustee of the trust fund created by subsection (1), (2) or (3), and the owner shall not appropriate or convert any part of a fund to the owner’s own use or to any use inconsistent with the trust until the contractor is paid all amounts related to the improvement owed to the contractor by the owner.  R.S.O. 1990, c. C.30, s. 7 (4). Contractor’s and subcontractor’s trust
8 (1) All amounts, (a)  owing to a contractor or subcontractor, whether or not due or payable; or (b)  received by a contractor or subcontractor, on account of the contract or subcontract price of an improvement constitute a trust fund for the benefit of the subcontractors and other persons who have supplied services or materials to the improvement who are owed amounts by the contractor or subcontractor.  R.S.O. 1990, c. C.30, s. 8 (1); 2017, c. 24, s. 66. Obligations as trustee (2) The contractor or subcontractor is the trustee of the trust fund created by subsection (1) and the contractor or subcontractor shall not appropriate or convert any part of the fund to the contractor’s or subcontractor’s own use or to any use inconsistent with the trust until all subcontractors and other persons who supply services or materials to the improvement are paid all amounts related to the improvement owed to them by the contractor or subcontractor.  R.S.O. 1990, c. C.30, s. 8 (2); 2017, c. 24, s. 66. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 66 - 12/12/2017
8.1 (1) Every person who is a trustee under section 8 shall comply with the following requirements respecting the trust funds of which he or she is trustee: 1.  The trust funds shall be deposited into a bank account in the trustee’s name. If there is more than one trustee of the trust funds, the funds shall be deposited into a bank account in all of the trustees’ names. 2.  The trustee shall maintain written records respecting the trust funds, detailing the amounts that are received into and paid out of the funds, any transfers made for the purposes of the trust, and any other prescribed information. 3.  If the person is a trustee of more than one trust under section 8, the trust funds may be deposited together into a single bank account, as long as the trustee maintains the records required under paragraph 2 separately in respect of each trust. 2017, c. 24, s. 8. Multiple trust funds in single account (2) Trust funds from separate trusts that are deposited together into a single bank account in accordance with subsection (1) are deemed to be traceable, and the depositing of trust funds in accordance with that subsection does not constitute a breach of trust. 2017, c. 24, s. 8. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 8 - 01/07/2018 Vendor’s trust
9 (1) Where the owner’s interest in a premises is sold by the owner, an amount equal to, (a)  the value of the consideration received by the owner as a result of the sale, less, (b)  the reasonable expenses arising from the sale and the amount, if any, paid by the vendor to discharge any existing mortgage indebtedness on the premises, constitutes a trust fund for the benefit of the contractor.  R.S.O. 1990, c. C.30, s. 9 (1); 2017, c. 24, s. 9, 70. Obligations as trustee (2) The former owner is the trustee of the trust created by subsection (1), and shall not appropriate or convert any part of the trust property to the former owner’s own use or to any use inconsistent with the trust until the contractor is paid all amounts owed to the contractor that relate to the improvement.  R.S.O. 1990, c. C.30, s. 9 (2). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 9, 70 - 12/12/2017
10 Subject to Part IV (holdbacks), every payment by a trustee to a person the trustee is liable to pay for services or materials supplied to the improvement discharges the trust of the trustee making the payment and the trustee’s obligations and liability as trustee to all beneficiaries of the trust to the extent of the payment made by the trustee.  R.S.O. 1990, c. C.30, s. 10.
11 (1) Subject to Part IV, a trustee who pays in whole or in part for the supply of services or materials to an improvement out of money that is not subject to a trust under this Part may retain from trust funds an amount equal to that paid by the trustee without being in breach of the trust.  R.S.O. 1990, c. C.30, s. 11 (1); 2017, c. 24, s. 66. Application of trust funds to discharge loan (2) Subject to Part IV, where a trustee pays in whole or in part for the supply of services or materials to an improvement out of money that is loaned to the trustee, trust funds may be applied to discharge the loan to the extent that the lender’s money was so used by the trustee, and the application of trust money does not constitute a breach of the trust.  R.S.O. 1990, c. C.30, s. 11 (2). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 66 - 12/12/2017
12 Subject to Part IV, a trustee may, without being in breach of trust, retain from trust funds an amount that, as between the trustee and the person the trustee is liable to pay under a contract or subcontract related to the improvement, is equal to the balance in the trustee’s favour of all outstanding debts, claims or damages related to the improvement or, if the contractor or subcontractor, as the case may be, becomes insolvent, all outstanding debts, claims or damages whether or not related to the improvement.  R.S.O. 1990, c. C.30, s. 12; 2017, c. 24, s. 10. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 10 (1) - 12/12/2017; 2017, c. 24, s. 10 (2)
- 01/07/2018 Liability for breach of trust
13 (1) In addition to the persons who are otherwise liable in an action for breach of trust under this Part, (a)  every director or officer of a corporation; and (b)  any person, including an employee or agent of the corporation, who has effective control of a corporation or its relevant activities, who assents to, or acquiesces in, conduct that he or she knows or reasonably ought to know amounts to breach of trust by the corporation is liable for the breach of trust.  R.S.O. 1990, c. C.30, s. 13 (1). Effective control of corporation (2) The question of whether a person has effective control of a corporation or its relevant activities is one of fact and in determining this the court may disregard the form of any transaction and the separate corporate existence of any participant.  R.S.O. 1990, c. C.30, s. 13 (2). Joint and several liability (3) Where more than one person is found liable or has admitted liability for a particular breach of trust under this Part, those persons are jointly and severally liable.  R.S.O. 1990, c. C.30, s. 13 (3). Contribution (4) A person who is found liable, or who has admitted liability, for a particular breach of a trust under this Part is entitled to recover contribution from any other person also liable for the breach in such amount as will result in equal contribution by all parties liable for the breach unless the court considers such apportionment would not be fair and, in that case, the court may direct such contribution or indemnity as the court considers appropriate in the circumstances.  R.S.O. 1990, c. C.30, s. 13 (4). part ii.1   construction dispute interim adjudication
13.1 In this Part, “adjudication” means construction dispute interim adjudication under this Part with respect to a matter referred to in section 13.5; (“arbitrage intérimaire”) “adjudicator” means a person who is qualified by the Authority as an adjudicator; (“arbitre intérimaire”) “Authority” means the Authorized Nominating Authority designated under section 13.2; (“Autorité”) “notice of adjudication” means a notice that meets the requirements of section 13.7. (“avis d’arbitrage intérimaire”) 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.2 (1) The Minister responsible for the administration of this Act may designate an entity to act as Authorized Nominating Authority for the purposes of this Part. 2017, c. 24, s. 11 (1). Criteria (2) An entity may not be designated under subsection (1), or act as Authorized Nominating Authority, unless it meets the prescribed criteria, if any. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 Duties and powers of Authority
13.3 (1) The Authority shall, (a)  develop and oversee programs for the training of persons as adjudicators; (b)  qualify persons who meet the prescribed requirements as adjudicators; (c)  establish and maintain a publicly available registry of adjudicators; (d)  appoint adjudicators for the purposes of subsection 13.9 (5); and (e)  perform any other duties of the Authority set out in this Part or that may be prescribed for the purposes of this Part. 2017, c. 24, s. 11 (1). Powers (2) The Authority may, (a)  subject to the regulations, set fees, costs or other charges related to the administration of adjudication under this Part, including fees, costs or charges for the training and qualification of persons as adjudicators or for the appointment of adjudicators, and require their payment; and (b)  exercise any other power of the Authority set out in this Part or that may be prescribed for the purposes of this Part. 2017, c. 24, s. 11 (1); 2018, c. 17, Sched. 8, s. 3 (1). Setting fees (3) In setting the fees, costs and charges referred to in clause (2) (a), the Authority may, subject to the regulations, specify their amounts or the method for determining the amounts. 2018, c. 17, Sched. 8, s. 3 (2). Fee retention (4) Money collected by the Authority under clause (2) (a), (a)  is revenue belonging to the Authority and not public money within the meaning of the Financial Administration Act; and (b)  may be retained and used by the Authority for its own account. 2018, c. 17, Sched. 8, s. 3 (2). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 2018, c. 17, Sched. 8, s. 3 (1, 2) - 01/10/2019
13.4 (1) The Minister responsible for the administration of this Act may act as Authorized Nominating Authority in accordance with subsection (2) on an interim basis, for any period during which an entity is not designated under section 13.2. 2017, c. 24, s. 11 (1). Same (2) If the Minister responsible for the administration of this Act acts as Authorized Nominating Authority, the Minister, (a)  shall, subject to subsection (3), perform the duties of the Authority, other than the duty set out in clause 13.3 (1) (a); and (b)  may exercise the powers of the Authority, other than the power set out in clause 13.3 (2) (a). 2017, c. 24, s. 11 (1). Same (3) A duty of the Authority that is set out in the regulations for the purposes of clause 13.3 (1) (e) must only be performed by the Minister if the regulations prescribed for the purposes of this section so provide. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 Availability of adjudication
13.5 (1) Subject to subsection (3), a party to a contract may refer to adjudication a dispute with the other party to the contract respecting any of the following matters: 1.  The valuation of services or materials provided under the contract. 2.  Payment under the contract, including in respect of a change order, whether approved or not, or a proposed change order. 3.  Disputes that are the subject of a notice of non-payment under Part I.1. 4.  Amounts retained under section 12 (set-off by trustee) or under subsection 17 (3) (lien set-off). 5.  Payment of a holdback under section 26.1 or 26.2. 6.  Non-payment of holdback under section 27.1. 7.  Any other matter that the parties to the adjudication agree to, or that may be prescribed. 2017, c. 24, s. 11 (1). Subcontract (2) Subject to subsection (3), a party to a subcontract may refer to adjudication a dispute with the other party to the subcontract respecting any of the matters referred to in subsection (1), with necessary modifications. 2017, c. 24, s. 11 (1). Expiry of adjudication period (3) An adjudication may not be commenced if the notice of adjudication is given after the date the contract or subcontract is completed, unless the parties to the adjudication agree otherwise. 2017, c. 24, s. 11 (1). Multiple matters (4) An adjudication may only address a single matter, unless the parties to the adjudication and the adjudicator agree otherwise. 2017, c. 24, s. 11 (1). Application despite other proceeding (5) A party may refer a matter to adjudication under this Part even if the matter is the subject of a court action or of an arbitration under the Arbitration Act, 1991, unless the action or arbitration has been finally determined. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.6 (1) An adjudication shall be conducted in accordance with the adjudication procedures set out in this Part, the regulations, and, subject to subsection (2), any additional adjudication procedures that may be set out in the contract or subcontract. 2018, c. 17, Sched. 8, s. 4. Same (2) Adjudication procedures set out in a contract or subcontract apply only to the extent that they do not conflict with this Part and the regulations, and their application is subject to the exercise of the adjudicator’s powers under section 13.12. 2018, c. 17, Sched. 8, s. 4. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 2018, c. 17, Sched. 8, s. 4 - 01/10/2019
13.7 (1) A party to a contract or subcontract who wishes to refer a dispute to adjudication shall give to the other party a written notice of adjudication that includes, (a)  the names and addresses of the parties; (b)  the nature and a brief description of the dispute, including details respecting how and when it arose; (c)  the nature of the redress sought; and (d)  the name of a proposed adjudicator to conduct the adjudication. 2017, c. 24, s. 11 (1). Copies (2) If the regulations so provide, a party who gives notice under subsection (1) shall give a copy of the notice, in the prescribed manner, to the prescribed persons or entities. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.8 (1) If the same matter or related matters in respect of an improvement are the subject of disputes to be adjudicated in separate adjudications under subsections 13.5 (1) and (2), the parties to each of the adjudications may agree to the adjudication of the disputes together by a single adjudicator as a consolidated adjudication. 2017, c. 24, s. 11 (1). May be required by contractor (2) If the same matter or related matters in respect of an improvement are the subject of disputes to be adjudicated in separate adjudications under subsections 13.5 (1) and (2) but the parties to each of the adjudications do not agree to consolidated adjudication, the contractor may, in accordance with the regulations, nevertheless require the consolidation of the adjudications. 2017, c. 24, s. 11 (1). Application (3) This Part applies with the following and any other necessary modifications to a consolidated adjudication: 1.  Subsection 13.10 (3) does not apply, and the adjudicator may determine how the adjudication fee is to be apportioned between the parties. 2.  The reference in subsection 13.12 (3) to either or both parties to an adjudication shall be read as a reference to any or all of the parties to the consolidated adjudication. 2.1  The reference in clause 13.11 (b) to the other party shall be read as a reference to every other party. 3.  The references in section 13.17 to the other party to the adjudication shall be read as a reference to any party to the consolidated adjudication. 2017, c. 24, s. 11 (1); 2018, c. 17, Sched. 8, s. 5. Multiple matters permitted (4) This section applies despite subsection 13.5 (4). 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 2018, c. 17, Sched. 8, s. 5 - 01/10/2019
13.9 (1) An adjudication may only be conducted by an adjudicator listed in the registry established under clause 13.3 (1) (c). 2017, c. 24, s. 11 (1). Selection of adjudicator (2) The parties to the adjudication may agree to an adjudicator, or may request that the Authority appoint an adjudicator. 2017, c. 24, s. 11 (1). Contract, subcontract may not name adjudicator (3) A provision in a contract or subcontract that purports to name a person to act as an adjudicator in the event of an adjudication is of no force or effect. 2017, c. 24, s. 11 (1). Requirement to request appointment (4) If an adjudicator does not consent to conduct the adjudication within four days after the notice of adjudication is given, the party who gave the notice shall request that the Authority appoint an adjudicator. 2017, c. 24, s. 11 (1). Appointment (5) The Authority shall appoint an adjudicator, subject to his or her prior consent, to conduct an adjudication no later than seven days after receiving a request for the appointment. 2017, c. 24, s. 11 (1). No requirement to act (6) Nothing in this Part or the regulations shall be read as requiring an adjudicator to agree to conduct an adjudication or to accept an appointment by the Authority to conduct an adjudication. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.10 (1) An adjudicator shall be paid a fee for conducting the adjudication, which shall be determined in accordance with subsection (2) before the adjudication commences. 2017, c. 24, s. 11 (1). Fee amount (2) The fee payable to an adjudicator is, (a)  the fee agreed to by the parties to the adjudication and the adjudicator; or (b)  if the parties and the adjudicator do not agree to a fee amount, the amount determined by the Authority, in accordance with the regulations, if any, on the adjudicator’s request. 2017, c. 24, s. 11 (1). Equal apportionment (3) The parties to the adjudication shall split payment of the adjudication fee equally, subject to a different determination under section 13.17. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.11 No later than five days after an adjudicator agrees or is appointed to conduct the adjudication, the party who gave the notice of adjudication shall, (a)  provide to the adjudicator a copy of the notice; and (b)  provide to the adjudicator and to the other party a copy of the contract or subcontract and any documents the party intends to rely on during the adjudication. 2018, c. 17, Sched. 8, s. 6. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 2018, c. 17, Sched. 8, s. 6 - 01/10/2019
13.11.1 A party who receives a notice of adjudication may, in accordance with the regulations, respond in writing. 2018, c. 17, Sched. 8, s. 6. Section Amendments with date in force (d/m/y) 2018, c. 17, Sched. 8, s. 6 - 01/10/2019 Conduct of adjudication
13.12 (1) In conducting an adjudication, an adjudicator may exercise the following powers and any other power of an adjudicator that may be specified in the contract or subcontract: 1.  Issuing directions respecting the conduct of the adjudication. 2.  Taking the initiative in ascertaining the relevant facts and law. 3.  Drawing inferences based on the conduct of the parties to adjudication. 4.  Subject to subsection (2), conducting an on-site inspection of the improvement that is the subject of the contract or subcontract. 5.  Obtaining the assistance of a merchant, accountant, actuary, building contractor, architect, engineer or other person in such a way as the adjudicator considers fit, as is reasonably necessary to enable him or her to determine better any matter of fact in question. 6.  Making a determination in the adjudication. 7.  Any other power that may be prescribed. 2017, c. 24, s. 11 (1). On-site inspection (2) The exercise of the power to conduct an on-site inspection under paragraph 4 of subsection (1) is subject to the prior consent of, (a)  the owner of the premises if, (i)  the premises is a home in which the owner resides, or (ii)  the owner is not a party to the adjudication; and (b)  any other person who has the legal authority to exclude others from the premises. 2017, c. 24, s. 11 (1). Costs of assistance (3) If the adjudicator obtains the assistance of a person under paragraph 5 of subsection (1), the adjudicator may fix the remuneration of the person as is reasonable and proportionate to the dispute and direct payment of the remuneration by either or both of the parties to the adjudication. 2017, c. 24, s. 11 (1). Conduct (4) Subject to this section, the adjudicator may conduct the adjudication in the manner he or she determines appropriate in the circumstances. 2017, c. 24, s. 11 (1). Impartiality (5) An adjudicator shall conduct an adjudication in an impartial manner. 2017, c. 24, s. 11 (1). Statutory Powers Procedure Act (6) The Statutory Powers Procedure Act
does not apply to adjudications. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.13 (1) Subject to subsection (2), an adjudicator shall make a determination of the matter that is the subject of an adjudication no later than 30 days after receiving the documents required by section 13.11. 2017, c. 24, s. 11 (1). Extension (2) The deadline for an adjudicator’s determination may be extended, at any time before its expiry and after the provision of documents to the adjudicator under section 13.11, (a)  on the adjudicator’s request, with the written consent of the parties to the adjudication, for a period of no more than 14 days; or (b)  on the written agreement of the parties to the adjudication, subject to the adjudicator’s consent, for the period specified in the agreement. 2017, c. 24, s. 11 (1). Notice of extension (3) If the party who gave the notice of adjudication also gave a notice of non-payment under Part I.1 in relation to the matter that is the subject of the adjudication, the party shall give notice of an extension under clause (2) (b), specifying the period of the extension, to the person to whom he or she gave the notice of non-payment. 2017, c. 24, s. 11 (1). Same (4) A person who receives notice of an extension under subsection (3) or under this subsection shall give notice of the extension, specifying the period of the extension, to any person to whom he or she gave notice of non-payment under Part I.1 in relation to the matter that is the subject of the adjudication. 2017, c. 24, s. 11 (1). Delayed determination (5) A determination made by an adjudicator after the date determined under subsection (1) or (2) is of no force or effect. 2017, c. 24, s. 11 (1). Written reasons (6) The adjudicator’s determination shall be in writing and shall include reasons for the determination. 2017, c. 24, s. 11 (1). Admissibility (7) The determination and reasons of an adjudicator are admissible as evidence in court. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.14 At any time after the notice of adjudication is given and before the adjudicator makes his or her determination, the parties to the adjudication may agree to terminate the adjudication, on notice to the adjudicator and subject to the payment of the adjudicator’s fee. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.15 (1) The determination of a matter by an adjudicator is binding on the parties to the adjudication until a determination of the matter by a court, a determination of the matter by way of an arbitration conducted under the Arbitration Act, 1991, or a written agreement between the parties respecting the matter. 2017, c. 24, s. 11 (1). Authority of court, arbitrator (2) Subject to section 13.18, nothing in this Part restricts the authority of a court or of an arbitrator acting under the Arbitration Act, 1991 to consider the merits of a matter determined by an adjudicator. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.16 Subject to section 13.17, the parties to an adjudication shall bear their own costs of the adjudication. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.17 If an adjudicator determines that a party to the adjudication has acted in respect of the improvement in a manner that is frivolous, vexatious, an abuse of process or other than in good faith, the adjudicator may provide, as part of his or her determination of the matter, that the party be required to pay some or all of the other party’s costs, any part of the fee amount determined under section 13.10 that would otherwise be payable by the other party, or both. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 Setting aside on judicial review
13.18 (1) An application for judicial review of a determination of an adjudicator may only be made with leave of the Divisional Court in accordance with this section and the rules of court. 2017, c. 24, s. 11 (1). Timing (2) A motion for leave to bring an application for judicial review of a determination of an adjudicator shall be filed, with proof of service, in accordance with the rules of court no later than 30 days after the determination is communicated to the parties. 2017, c. 24, s. 11 (1). Dismissal without reasons (3) A motion for leave to bring an application for judicial review may be dismissed without reasons. 2017, c. 24, s. 11 (1). No appeal (4) No appeal lies from an order on a motion for leave to bring an application for judicial review. 2017, c. 24, s. 11 (1). Setting aside only for specified reasons (5) The determination of an adjudicator may only be set aside on an application for judicial review if the applicant establishes one or more of the following grounds: 1.  The applicant participated in the adjudication while under a legal incapacity. 2.  The contract or subcontract is invalid or has ceased to exist. 3.  The determination was of a matter that may not be the subject of adjudication under this Part, or of a matter entirely unrelated to the subject of the adjudication. 4.  The adjudication was conducted by someone other than an adjudicator. 5.  The procedures followed in the adjudication did not accord with the procedures to which the adjudication was subject under this Part, and the failure to accord prejudiced the applicant’s right to a fair adjudication. 6.  There is a reasonable apprehension of bias on the part of the adjudicator. 7.  The determination was made as a result of fraud. 2017, c. 24, s. 11 (1); 2018, c. 17, Sched. 8, s. 7. Amounts paid (6) If the Divisional Court sets aside the decision of an adjudicator, the Court may require that any or all amounts paid in compliance with the determination be returned. 2017, c. 24, s. 11 (1). No stay (7) An application for judicial review of a decision of an adjudicator does not operate as a stay of the operation of the determination unless the Divisional Court orders otherwise. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019 2018, c. 17, Sched. 8, s. 7 - 01/10/2019 Amounts payable
13.19 (1) A requirement to pay an amount in accordance with this section is subject to any requirement to retain a holdback in accordance with Part IV. 2017, c. 24, s. 11 (1). Enforcement of amounts payable (2) A party who is required under the determination of an adjudicator to pay an amount to another person shall pay the amount no later than 10 days after the determination has been communicated to the parties to the adjudication. 2017, c. 24, s. 11 (1). Interest on late payments (3) Interest begins to accrue on an amount that is not paid when it is due to be paid under this Part, at the prejudgment interest rate determined under subsection 127 (2) of the Courts of Justice Act or, if the contract or subcontract specifies a different interest rate for the purpose, the greater of the prejudgment interest rate and the interest rate specified in the contract or subcontract. 2017, c. 24, s. 11 (1). No interest on interest (4) Subsection (3) does not apply in respect of any amount payable under section 6.9. 2017, c. 24, s. 11 (1). Suspension of work (5) If an amount payable to a contractor or subcontractor under a determination is not paid by the party when it is due under this section, the contractor or subcontractor may suspend further work under the contract or subcontract until the party pays the following amounts: 1.  The amount required to be paid under the determination. 2.  Any interest accrued on that amount under subsection (3). 3.  Any reasonable costs incurred by the contractor or subcontractor as a result of the suspension of work. 2017, c. 24, s. 11 (1). Same, costs of resumption (6) A contractor or subcontractor who suspends work under subsection (5) is entitled to payment, by the party, of any reasonable costs incurred by him or her as a result of the resumption of work following the payment of the amounts referred to in that subsection. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.20 (1) A party to an adjudication may, no later than the date referred to in subsection (2), file a certified copy of the determination of an adjudicator with the court and, on filing, the determination is enforceable as if it were an order of the court. 2017, c. 24, s. 11 (1). Deadline (2) The filing of a determination under subsection (1) may not be made after the later of, (a)  the second anniversary of the communication of the determination to the parties; and (b)  if a party makes a motion under section 13.18 for leave to bring an application for judicial review of a determination of an adjudicator, the second anniversary of the dismissal of the motion or, if the motion was not dismissed, the final determination of the application, if it did not result in the adjudicator’s determination being set aside. 2017, c. 24, s. 11 (1). Notice of filing (3) A party shall, no later than 10 days after filing a determination under subsection (1), notify the other party of the filing. 2017, c. 24, s. 11 (1). Effect on requirement to make payments (4) If a determination requiring that an amount be paid to a contractor or subcontractor is filed under subsection (1), any related requirement of the contractor or subcontractor, as the case may be, to make payment to a subcontractor is deferred pending the outcome of the enforcement. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.21 No action or other proceeding shall be commenced against an adjudicator or his or her employees for any act done in good faith in the execution or intended execution of any duty or power under this Part or the regulations, or for any alleged neglect or default in the execution in good faith of that duty or power. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.22 An adjudicator shall not be compelled to give evidence in any action or other proceeding in respect of a matter that was the subject of an adjudication that he or she conducted. 2017, c. 24, s. 11 (1). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (1) - 01/10/2019
13.23 If the regulations so provide, this Part applies, with such modifications as the regulations specify, to disputes in respect of such surety bonds to which Part XI.1 applies as are specified by the regulations. 2017, c. 24, s. 11 (2). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 11 (2) - 01/10/2019 PART III   THE LIEN
14 (1) A person who supplies services or materials to an improvement for an owner, contractor or subcontractor, has a lien upon the interest of the owner in the premises improved for the price of those services or materials.  R.S.O. 1990, c. C.30, s. 14 (1); 2017, c. 24, s. 12 (1), 66. No lien for interest (2) No person is entitled to a lien for any interest on the amount owed to the person in respect of the services or materials that have been supplied by the person, but nothing in this subsection affects any right that the person may otherwise have to recover that interest.  R.S.O. 1990, c. C.30, s. 14 (2). Architects (3) For greater certainty, subsection (1) applies to services or materials supplied by an architect as defined in the Architects Act and any employees of the architect. 2017, c. 24, s. 12 (2) Section Amendments with date in force (d/m/y) 2017, c. 24, s. 12 (1, 2), 66 - 12/12/2017
15 A person’s lien arises and takes effect when the person first supplies services or materials to the improvement.  R.S.O. 1990, c. C.30, s. 15.
16 (1) A lien does not attach to the interest in a premises of, (a)  the Crown; or (b)  a municipality. 2017, c. 24, s. 13 (4). Interest of other person (2) Where an improvement is made to a premises in which the Crown or a municipality has an interest but the Crown or municipality is not an owner of the premises, the lien may attach to the interest of any other person in the premises. 2017, c. 24, s. 13 (4). Where lien does not attach to premises (3) A lien does not attach to a premises, but constitutes a charge under section 21, if, (a)  the owner of the premises is the Crown or a municipality; or (b)  the premises is a railway right-of-way. 2017, c. 24, s. 13 (4). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 13 (1-3) - 12/12/2017; 2017, c. 24, s. 13 (4)
- 01/10/2019
17 (1) The lien of a person is limited to the amount owing to the person in relation to the improvement and, subject to Part IV (holdbacks), it is further limited to the least amount owed in relation to the improvement by a payer to the contractor or to any subcontractor whose contract or subcontract was in whole or in part performed by the supply of services or materials giving rise to the lien.  R.S.O. 1990, c. C.30, s. 17 (1); 2017, c. 24, s. 67. Same (2) Subject to Part IV, the total value of the liens of all members of a class, as defined in section 79, is limited to the least amount owed in relation to the improvement by a payer to the contractor or to any subcontractor whose contract or subcontract was in whole or in part performed by the supply of services or materials made by the members of the class.  R.S.O. 1990, c. C.30, s. 17 (2). Set-off (3) Subject to Part IV, in determining the amount of a lien under subsection (1) or (2), there may be taken into account the amount that is, as between a payer and the person the payer is liable to pay, equal to the balance in the payer’s favour of all outstanding debts, claims or damages related to the improvement or, if the contractor or subcontractor, as the case may be, becomes insolvent, all outstanding debts, claims or damages whether or not related to the improvement.  R.S.O. 1990, c. C.30, s. 17 (3); 2017, c. 24, s. 14 (1, 2). Liability of municipality (4) Despite subsection (1), where land is dedicated to a municipality as a public street or highway and an improvement is made to the land at the written request of, or under an agreement with, the municipality, but not at its expense, the municipality shall nevertheless, on default of payment by the proper payer, be liable to the value of the holdbacks under Part IV that would have been required were the improvement made at the expense of the municipality, and the procedure for making a claim under this subsection shall be the same as for enforcing a claim for lien against a municipality.  R.S.O. 1990, c. C.30, s. 17 (4); 2017, c. 24, s. 14 (3); 2017, c. 24, s. 14 (4). Section Amendments with date in force (d/m/y) 2017, c. 24, s. 14 (1, 3), 67 - 12/12/2017; 2017, c. 24, s. 14 (2)
- 01/07/2018; 2017, c. 24, s. 14 (4)
- 01/10/2019
18 Where the interest of the owner in the premises is held jointly or in common with another person who knew or ought reasonably to have known of the making of the improvement, the joint or common interest in the premises of that person is also subject to the lien unless the contractor receives actual notice, before the supply of services or materials to the improvement is commenced, that the person having the joint or common interest assumes no responsibility for the improvement to be made.  R.S.O. 1990, c. C.30, s. 18; 2017, c. 24, s. 15. Section Amendments with date in force (d/m/y) 2017, c. 24, s. 15 - 12/12/2017