International Construction Law Review
PROMPT PAYMENT MOVEMENT SWEEPS ACROSS CANADA
Paula Olexiuk
Partner, Construction & Infrastructure, Osler, Hoskin & Harcourt LLP (Calgary)
Melanie Gaston
Partner, Litigation, Osler, Hoskin & Harcourt LLP (Calgary)
Richard Wong
Partner, Construction & Infrastructure, Osler, Hoskin & Harcourt LLP (Toronto)
Jagriti Singh
Associate, Construction & Infrastructure, Osler, Hoskin & Harcourt LLP (Toronto)
ABSTRACT
Inspired by legislation enacted in the UK almost 25 years ago, prompt payment and mandatory adjudication legislation has been sweeping across Canada in recent years since its consideration in Ontario in 2015 and passage into law in 2019.1 This article provides an overview as well as an update on the subsequent evolution of prompt payment and mandatory adjudication legislation in Canada. While the new Canadian legislation, both at the federal and provincial levels, generally embody the core concepts of the legislation that inspired it, this article also highlights variations that reflect some of the unique attributes and dynamics of each jurisdiction.
* The authors would like to thank Storme Mckop, Cristina Cosneanu, Cole Tavener, Andrew Rintoul, Pamela Lee, Gabriel Paquette Allard, Anabel Semerdzhieva, Klara Franklyn, and Erica Barrett-Fox at Osler, Hoskin & Harcourt LLP, for their assistance in the preparation of this article. The authors would also like to thank Lesley Lee, Manager, Litigation at TC Energy who co-authored an earlier version of this article in relation to the energy industry in Canada – Olexiuk, P, Gaston, M, Singh, J and Lee, L, “Prompt Payment Movement Sweeps Across Canada: Is the Energy Industry Ready to Comply?”, Alberta Law Review, Volume 59, No 2: Energy Law Edition, pages 313–354.
1 Reynolds, B, Vogel, S and Little, J, “A Report on the Introduction of Prompt Payment and Adjudication Legislation in the Province of Ontario”, [2019] ICLR 73 (Reynolds).
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