Coronavirus - Government measures in key jurisdictions - Flipbook - Page 21
Canada
The government of Ontario has introduced the Coronavirus ( COVID-19) Support and
Protection Act, which includes amendments to the Planning Act authorizing the Minister
to make regulations respecting the calculation of time for development applications in
connection with the emergency declared under the Emergency Management and Civil
Protection Act (EMCPA).
Regulations have been released to provide municipalities with additional flexibility
during the COVID-19 emergency to process and advance development applications,
particularly where there is no dispute, without concern that appeals may be filed on the
basis of non-decision. This should also come as welcome news to applicants and new
homebuyers, who have faced technical challenges to project delivery and new home
closings during this emergency.
More information on the new provincial legislation in Ontario can be found here.
The Ontario government has made an order under the Emergency Management and Civil
Protection Act suspending limitation periods and procedural time periods (the Suspension
Order). The suspension is retroactive to March 16, 2020, and continues for the duration of
the emergency, for a maximum of 90 days, unless extended by further order.
An apparent unintended consequence of the Suspension Order was its impact on the
timing of the release of statutory holdback on construction projects across Ontario.
Since the expiration dates for liens was suspended, holdback that would otherwise
have become due and payable during the suspension period could be expected to
not be released by owners until potential lien claims had expired, after the suspension
period had been lifted. This, in turn, would have significant cash flow implications for an
already suffering construction industry.
The government of Ontario has recognized the financial impact suspended lien
periods would have on contractors and subcontractors due to the inability of owners to
release holdback and has, accordingly, decided to order that the Construction Act be
exempted from the Suspension Order.
Additionally, the government of Ontario has made several orders with respect to the
closure of all non-essential businesses. The list of essential workplaces has been
reduced to 44.
Certain construction projects have been deemed essential and are exempt from the
orders. These essential construction projects include healthcare sector projects, critical
infrastructure projects, critical industrial projects, and certain residential projects that
have specific permits already granted. In addition, the government of Ontario has now
added construction projects that are due to be completed before October 4, 2020 and
that would provide additional capacity in the production, processing, manufacturing
or distribution of food, beverages or agricultural products. This added category of
essential construction projects is intended to keep key supply chains running and to
avoid food and beverage shortages.
Additional discussion on the impact on construction lien periods and construction
projects can be found here.
Government measures in key jurisdictions
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