Canadian Lawyer InHouse

September

Legal news and trends for Canadian in-house counsel and c-suite executives

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53 CANADIANLAWYERMAG.COM/INHOUSE SEPTEMBER 2017 dicators required enforcement proceedings. The U.K. process "experienced some growing pains, but by and large it appears to be successful," observes Roger Gillott, a lit - igation partner at Osler Hoskin & Harcourt LLP in Toronto who specializes in the con- struction sector. Still, the tight timelines in the proposed Ontario legislation raise some concerns. "A quick adjudication of a relatively small issue can work," says Gillott. "For ongoing infrastructure projects, I am not sure if this fits well. It will be a challenge for the legislation," he adds. The requirement for a decision within 30 days after receiving the applicant's docu - ments also may not give time for the re- sponding party to put its own proper record before the adjudicator, Gillott notes. "For general counsel, they are going to have to be ready along the way for any claim that might come up. The documentation will have to be carefully prepared right from the begin - ning of any project," says Gillott. Disputes over who is responsible for de- lays in projects "are among the most costly and complicated claims," says Bulat. The ad- judicator model may not be the best for re- solving these issues, but since it is an interim ruling, he says it may be a good compromise. "Let's deal with this result, but at least it will keep the project going and you will still have the ability to litigate later," says Bulat. Abbott says he believes the U.K. model is a good one to bring to Ontario and other jurisdictions in Canada. As well, the interim adjudication system does not have to be onerous. "This is a record-keeping exercise. Make sure your accounting system is up to date, your forms are appropriate. Have a team in place that can assist in the adjudica - tion process," says Abbott. The changes in the proposed legislation help clarify who is the "owner" in public- private partnerships for contract issues and which entity is required to hold back funds for contractors. Another amendment in this section makes it easier to release funds on each site in an infrastructure project such as the construction of nearly 20 provincial police detachments in Ontario that are part of a single bundled agreement. Deadlines to preserve a lien have been extended to 60 days from 45 days. There are then another 90 days to perfect a lien, which the province says is designed to encourage more out-of-court settlements of disputes. The review report notes that the mean time permitted in Canada to perfect a lien is 208 days. Increasing the total amount of time to 150 days in Ontario brings it closer to other jurisdictions in the country, without reduc - ing the "sense of urgency" that the report says should be associated with the process. In seeking to balance the interests of all parties in the construction sector, there is still significant "freedom to contract" within the amendments, says Reynolds. He agrees that it may initially require a bit of a different mindset, if the measures become law later this year, as expected. "The participants in the industry are going to have to adapt their processes to a certain extent," he says. IH I n d u s t r y S p o t l i g h t Visit gpllm.law.utoronto.ca Questions? gpllm@utoronto.ca Apply today. ONE YEAR | PART-TIME | FOR LAWYERS AND BUSINESS LEADERS Master the Law. Canada's leading law school offers a graduate degree in four unique streams: Business Law Canadian Law in a Global Context Innovation, Law and Technology Law of Leadership ntitled-5 1 2017-08-17 3:02 PM

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