On January 30th, Singleton Urquhart Reynolds Vogel LLP Partners Bruce Reynolds and Sharon Vogel, along with Canadian construction industry stakeholders attended a news conference announcing the federal government’s plan to legislate prompt payment requirements on all federal construction projects.

A press release from Public Services and Procurement Canada stated that, “The Government of Canada is committed to growing the economy, strengthening the middle class and helping those working hard to join it. As part of this commitment, action is underway on multiple fronts to ensure that construction contractors and subcontractors who do business with the federal government are paid promptly”.

Led by Reynolds and Vogel, the firm has been contracted to prepare a recommendation package after seeking input from the construction industry on prompt payment and adjudication. The information package delivered to stakeholders has been released and we will be conducting consultation sessions in March 2018.

In 2015, Reynolds and Vogel were retained to undertake a review of the Construction Lien Act by the Minister of the Attorney General and the Minister of Economic Development and Infrastructure in Ontario. The review resulted in a series of recommendations, including recommendations for a prompt payment regime, modernization of construction lien and holdback rules and an adjudication system that provides interim binding resolution of disputes. Nearly all of their recommendations were adopted by Ontario’s provincial government. As a result of this effort Bill 142 received royal assent in the Ontario legislature in December 2017.