Articles 2019

This article explores the legalities surrounding modular construction. Modular construction is a process in which a building or structure, or components thereof, are constructed off-site, in a factory-like setting. While modular construction has existed for some time, today it remains an under-utilized building or construction process in Canada, comprising only 3% of North American new builds. It is clear that modular construction will have a place in the future of building in Canada. 

Construction Law is unique to almost every geographical region. Learning one region's laws, however, could be beneficial to advancing laws in our own. In this piece, the author explores specific provisions under the Michigan Construction Lien Act and suggests how these provisions may benefit Ontario's Construction Act.

The case of Electro-Works Ltd. v. Fogler, Rubinoff LLP expands the scope of liability for breach of trust to include monies received through settlement funds and applied as payment for lawyers’ fees.

Anyone who has provided services or materials in the construction industry has likely run into the issue of non-payment of their invoices. But how do you determine when the limitation period begins to run for an unpaid invoice, and in turn, the deadline for when a lawsuit must be commenced? The recent case of 1838120 Ontario Inc. v. Township of East Zorra-Tavistock, 2021 ONSC 3341, is of assistance in answering these questions.

In the recent case Clearwater Structures v. 614128 Ontario Ltd. o/a Trisan Construction, 2021 ONSC 5601 (CanLII), the court suggests that in addition to obligations to segregate and hold funds for trust beneficiaries in the Act, there may also be circumstances where there is an implied obligation to pay those trust funds in a timely fashion.

The Companies' Creditors Arrangement Act proceedings involving Carillion Canada and related entities have been an ongoing area of interest for the construction industry since proceedings began in early 2018. Recently, Ernst & Young, (in its capacity as Monitor of Carillion Canada in the CCAA proceeding), brought a motion seeking a declaration that certain funds received in relation to various construction projects were deemed statutory trust funds pursuant to the Construction Lien Act.

A recent decision by Justice Steele in the Ontario Superior Court of Justice has brought some much-needed clarity for road building contractors seeking to uphold (or overturn) an interim-binding decision of a referee under MTO’s dispute resolution procedures.

In December 2020, the Supreme Court of Canada has released a much-anticipated decision on the contractual duty of honest performance, which principle the SCC recognized as a “new” good faith doctrine, formulated in its previous decision Bhasin v. Hyrnew . In Callow, the SCC was divided in its views on the duty of honest performance, with a five-judge panel rendering the majority decision, three judges concurring and one strongly dissenting.

The changes to the Construction Act, including the introduction of prompt payment and adjudication, were designed, in part, to bring construction projects to completion faster and with fewer payment delays. In the construction context, adjudication is the determination of a dispute arising under a contract by an adjudicator who is a qualified person appointed to conduct an investigation and make a quick decision.

The new CCDC 2 updates the standard form contract to catch up with recent prompt payment and adjudication changes in Ontario. It also introduces a number of other changes to both reflect more recent trends in contracting and to otherwise streamline the contract. This article provides a brief summary of some of these changes, with references to the corresponding paragraphs of the CCDC 2.