SAC responds to order that impacts the release of holdback bonds

April 6, 2020

On March 20, 2020, the Ontario Lieutenant Governor in Council made an order under s.7.1 of the Emergency Management and Civil Protection Act suspending limitation periods in any legislation, regulation, order or by?law. This suspension is retroactive to March 16, 2020 and continues for the
“duration of the emergency.”

The order was issued with the best of intentions with the objective of protecting the public from the expiry of legal rights in circumstances where the COVID?19 pandemic prevents parties from taking the steps necessary to preserve those rights. However, an unintended consequence of the measure directly impacts the operation of construction contractors who are finding that their holdback monies are being withheld by project owners,
including government entities, who are now concerned about liens being filed on projects; even after the statutory lien period has expired.

To read the SAC press release, click here.

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