Ontario Cutting Red Tape to Support Jobs and Growth in the Construction Industry
Changes Will Help Workers and Businesses Resolve Disputes Faster and Get Paid on Time
TORONTO — Today, Attorney General Doug Downey announced an essential next step to the full implementation of a first-in-Canada prompt payment regime to support jobs and growth in the construction industry. This regime will help cut through red tape, help create and protect jobs and attract investment to the province.
The implementation of these changes will prevent payment disputes from delaying work on construction projects, speed up the payment process and reduce time and money spent on litigation for businesses.
Following a fair and open selection process, ADR Chambers was selected as the successful candidate to serve as the Authorized Nominating Authority. This new body will oversee the adjudication process for construction disputes, including the training and qualification of adjudicators.
This adjudication system brings into force a new process that will give people and businesses a cost-effective and efficient alternative to settling payment disputes in court. Starting October 1, 2019, subject to applicable transition rules, parties to construction contracts and subcontracts will be able to receive a binding decision from an experienced construction adjudicator in approximately six weeks, a process that could take months or even years in the court system.
"Ontario is open for business and open for jobs, and our government is implementing industry-leading changes to the construction sector as part of our plan to restore the province as an economic powerhouse," said Attorney General Downey. "The new construction adjudication system, as overseen by the Authorized Nominating Authority, will cut through the red tape that slows down the dispute resolution process - getting projects back on track and ensuring workers are paid on time."