virtually any construction di due to a receipt by a party of a "Notice of Non-Payment" as well as other disputes. For further details, refer to our page "What is Adjudication?". The mechanism promises to be extremely timely, efficient and cost effective when compared to the lengthy, inefficient and expensive lien, Court and other processes in use today.
The adjudication processes will not be voluntary: any party to a construction contract or subcontract will be able to submit a dispute to be adjudicated. The Adjudication Time-Frames, however, will be very strict and short. Participants will have little time to submit and respond to claims. Accordingly, owners, contractors, subcontractors, consultants and suppliers will all have to put systems in place if they are to manage, and take advantage of, the changes.
Our embrace of the culture shift in litigation leaves us well suited to assist our clients to prepare for and participate in adjudication. For more detailed information on Adjudication, as well as the other changes coming with the Construction Act, see the Articles set out in our Blog.
Construction Act Ready Contracts
If there was ever a time to review your form of contract or subcontract, that time is now. This is because the risks associated with the Construction Act can be managed through contractual provisions and processes. As a starting point, payment provisions should be brought in line with prompt payment. Processes can also be established to make it easier for owners and consultants to review Proper Invoices within 14 days as required. Clarity can be brought to the application of the Act's holdback procedures and bonding requirements, etc. In addition, the Act allows parties to agree on certain aspects of the adjudication processes. We are happy to help with all of these issues.
Is your project subject to the new Construction Act?
Unless the improvement is to a premises upon which a lease has been entered into prior to July 1, 2018, the changes that come into force on that date will only become effective as new improvements are put out to tender or contracted for. For subcontractors, the timing of the subcontract is irrelevant: it is the timing of the tender process or contract (whichever comes first) that governs.
Where an improvement is to a premises upon which someone entered into a lease before July 1, 2018, these new provisions will not apply. This is because the new provisions change how le,ases and leasehold interests are addressed. Care must be taken as the transition provisions can be very complicated in their application.
As determining whether the new provisions apply to your project may require determining who the contractor is, when the contract was entered into and whether or not the premises being proved is subject to leasehold it is best to error on the side of caution and consult legal counsel