Canadian Lawyer InHouse

29 CANADIANLAWYERMAG.COM/INHOUSE JULY/AUGUST 2018 task of resolving invoice claims and fights over billings. The notion is to provide a form of "rough justice" that keeps projects and cash flows moving. "The objective there is to nip prob - lems in the bud," says Ted Betts, vice chair- man of the construction and infrastructure law section at the Ontario Bar Association. Betts, who also heads up the construction group at Gowling WLG (Canada) LLP, says studies show that "when the stakes are small and not so high, people are not en - trenched in the fight. You may end up with more skirmishes but fewer wars." The U.K. experience suggests that by addressing invoice fights early, there is less likelihood of a lingering effect. Parties move on. However, Betts warns that the timelines for adjudication are very tight. For example, once a notice of adjudication is issued, the parties have four days to agree on an adju - dicator and, within five days of that, the ini- tiator has to provide the adjudicator with its relevant documents. Adjudicators must rule on a matter within 30 days of receiving it. Astolfo points out that each party pays the costs of the adjudicators. "It's going to be costly. In-house counsel have to consider how do they bake those costs into their bids." The "Striking the Balance Report" notes that the most popular range for a U.K. ad - judication was between £2,500 and £5,000. However, a close second range was between £15,001 and £20,000. Construction lawyer Andrea Lee at Glaholt LLP, who also sits on the OBA's construction law section, says the plethora of changes will have a profound impact, and organizations will have to implement better controls. "Be prepared to have a greater focus on contract administration throughout the lifetime of the project," she warns. As well, all standard form contracts must be re - viewed, she says. Astolfo adds that "people are going to have to get their staff ready to meet these new limitation periods. There is going to be a lot of paperwork." There are new notice requirements and forms. One of the biggest challenges will be simply managing which law applies when. There is the possibility that three differ - ent regimes could be at play, depending on when a project was tendered and contracts were signed. Contracts and procurements in place before July 1, 2018 will be grand - fathered and the old rules apply. Then there will be new deadlines for lien and holdback rules for contracts that come into effect after July 1. The third regime commences October 2019 with the introduction of prompt payment and adjudication. Keeping it all straight will require deft project man - agement skills. Moran says it will be the Wild West for a while until "everybody gets comfortable with it and understands the way it is sup - posed to work." IH Right-sized Thinking® • 1-800-323-3781 • pallettvalo.com Your Authority For: Business Law • Commercial Litigation • Commercial Real Estate Construction • Insolvency & Corporate Restructuring Employment & Labour • Wills, Estates & Trusts No Matter the Size or Type of Case, We Can Handle It From the complex to the simple; our range of expertise enables us to handle whatever size or type of legal issue you may have. We are committed to providing forward-thinking and flexible legal counsel while maintaining client service excellence. That's what we like to call Right-sized Thinking®. Pallett Valo is honoured to once again be ranked one of Ontario's Top 10 Regional Law Firms, as selected by the readers of Canadian Lawyer magazine. We are grateful to our clients, referral sources and friends in the legal community for their support. ntitled-8 1 2018-06-12 12:51 PM

• Cover