The recent case of Dalren Limited v Loadstar Trailers, 2024 ONSC 7144 addresses the transition provisions under s. 87.3 of the Construction Act (the “Act”)1 and serves as useful reminder regarding the definition of “owner” under the Act. FACTS: Before December 11, 2017, Loadstar Trailers Inc., (“Loadstar”) and 1978317 Ontario Ltd. (“197”) sought a proposal from Dalren Limited (“Dalren”) to construct a manufacturing facility on a property to be purchased by 197 at Thompson Street in Coburg. In 2017, Dalren presented a preliminary proposal to build the facility at Thompson Street in Coburg. At the time of negotiations, 197 did not own the…

From rising material costs to the shifting landscape of construction contracts, all of those who work in the construction industry needs to consider how tariffs will impact their current and future projects. This also requires reviewing construction contracts to better understand how tariffs will impact current and future projects. The Impact of Tariffs on the Construction Industry The 25% tariff on Canadian goods, particularly steel and aluminum, is expected to have significant impact on the construction industry. Here are some of the ways Increased Material Costs: Tariffs will likely lead to higher prices for certain materials. The rising costs is expected to increase…

Last year, we wrote about the case of TruGrp Inc. v Karmina Holdings Inc. where the court adjourned a motion that considered language commonly used in letters of credit posted with the court to vacate construction liens from title. The language used in the letter of credit permits the issuing bank to not renew the letter of credit and instead replace it with a bank draft.

The Divisional Court recently released its decision in Demikon Construction Ltd v Oakleigh Holdings Inc (“Demikon”) determining that section 28 payments made by owners and contractors who want to “jump a rung” and directly pay subcontractors or sub-subcontractors are only valid to the extent that those payments are made to a person having a lien. Pursuant to section 1.1 of the Construction Act, a person having a lien includes both a lien claimant and a person with an unpreserved lien. Where owners or contractors try to make section 28 payments to parties not meeting the definition of a person having a lien, such payments may not result in a credit to the payor and may not be relied upon to reduce security paid into court to vacate any liens arising from the improvement.

We welcome you to join us at our webinar: Renovations are coming to the Construction Act, on Friday January 24, 2025 at 10:00 AM EDT.

It is our birthday! Three years ago today, Construct Legal officially opened! Back then we had a laptop, no website and a dream.

The recent case of Accurate Railroad Construction Ltd v Sierra Infrastructure Inc., 2024 ONSC 3722 provides guidance on fraud allegations in adjudication proceedings and whether or not to stay an adjudicator’s determination pending judicial review.

Happy Thanksgiving! Thank you for all of your support this year. We look forward to building with you in 2025!

While there is no appeal from adjudicator's determinations under the Construction Act (the "Act"), the court's jurisdiction to grant judicial review is set out in s. 13.18(5) of the Act.

Last week, Construct Legal hosted its first-ever Small Firms Associate Event, bringing together talented associates from small firms across Toronto.

The Ontario Superior Court of Justice’s August 23, 2024, decision in R v Greater Sudbury (City) provides much-needed clarity on the ability of owners to rely on due diligence as a defence to claims brought under the Occupational Health and Safety Act (“OHSA”).

There have been very few Canadian cases dealing with flow-through claims. Fortunately, the recent case of Walsh Construction v Toronto Transit Commission et al., 2024 ONSC 2782, provides valuable guidance for parties advancing flow-through claims in construction contexts.

In the decision of High Tech Power Inc. v. BDA Inc., 2024 ONSC 4327, the court recently re-affirmed that adjudications under the Construction Act are to be upheld and that a party ordered by an adjudicator to pay money must make that payment to the successful party.

In this case1, Jamrik sought judicial review of an adjudication determination ordering it to pay the amount of $564,812.87 under the prompt payment regime. The Divisional Court held that the Adjudicator did not make the factual findings needed to determine whether the contract was complete and consequently whether the Adjudicator had jurisdiction to hear the dispute. The Divisional Court quashed the decision and remitted it back to be heard by a new adjudicator.

CCDC-style agreements are used for many construction projects in Ontario. Two of the more common base-style agreements, the CCDC 5A and CCDC 5B, present very different project delivery methods from both the owner and construction manager perspective.

Parties to construction contracts must carefully consider their dispute resolution and contract documents' priority clauses. In our latest blog entry, Paul Conrod discusses a recent Ontario case involving the arbitration clause contained in the CCDC 14 Design-Build Stipulated Price Contract.

The Ontario Court of Appeal confirms that the proper route of appeal from an adjudicator’s determination is to the Divisional Court.

Sometimes a construction contract has terms that attempt to remove requirements and remedies available under the Construction Act. For example, the contract states that a party cannot lien or a party has to pay the full amount of an invoice without the statutory 10% holdback. Those terms are not enforceable as parties cannot contract out of their obligations under the Construction Act.

Vacating a lien from title using a letter of credit as security

Vacating the registration of a claim for lien from title to a property is a common and routine procedure in construction litigation.

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Thinking about going out on your own or modernizing your firm? One of the toughest decisions to make is about the software to choose. And now this software is more than just docketing, it involves AI too.