Canada: Construction & Planning

For decades, thousands of Canadians have owned cottages on land leased from First Nations. Many have bought, sold, renovated, and passed these properties down through generations, often treating them much like any other cottage.

Construction projects rarely go exactly as planned. Design changes, delayed access, unexpected site conditions, changes in sequencing, acceleration and other project impacts can increase the cost of completing the work.

Much has been said about Manitoba’s recent change to its basic limitation period for construction disputes, which generally reduced the time to start lawsuits from six years to two years. However, the passage of two years may not always be the end of the story for an unpaid contractor or subcontractor.

British Columbia's Construction Prompt Payment Act introduces mandatory payment deadlines and fast-track adjudication for construction disputes. Owners must pay contractors within 28 days, contractors must pay subcontractors within seven days, and payment disputes can be resolved through binding adjudication outside the courts. The legislation also shortens the holdback period under the Builders Lien Act and eliminates standalone liens against holdbacks.

Ontario's Minister of Municipal Affairs and Housing has taken the rare step of referring Toronto's Official Plan Amendment 804 to the Ontario Land Tribunal for recommendation. This referral involves the redesignation of certain Employment Areas and will have significant implications for how the province's new "area of employment" regime is applied across Ontario. The Tribunal's forthcoming recommendation will be closely watched by municipalities and stakeholders throughout the province.

The Ontario Superior Court recently upheld an arbitration award despite finding the arbitrator committed an error of law, ruling that "final and binding" language in the parties' arbitration agreement precluded any right of appeal. This decision highlights the significant consequences contractual language about arbitration finality can have on a party's ability to challenge an unfavorable award, even when a court would otherwise agree with the unsuccessful party's position.

The International Chamber of Commerce's 2025 dispute resolution statistics reveal significant growth in arbitration cases, with North American parties increasingly turning to institutional arbitration. This analysis examines key metrics including industry sectors, dispute values, and procedural trends, while exploring how the new 2026 ICC Arbitration Rules and Canadian court backlogs may reshape the arbitration landscape.

Financing and home inspection conditions serve as critical safeguards in Ontario real estate transactions, protecting buyers from unforeseen financial and structural issues. Ontario real estate lawyer Jason Lane explains why mortgage pre-approvals don't guarantee final financing and how professional inspections can reveal hidden defects that impact purchase decisions.

The Ontario Superior Court has issued a landmark ruling clarifying the strict scope of trust obligations under Ontario's Construction Act, holding a contractor liable for unpaid invoices while imposing personal liability on its directors for commingling trust funds with operating funds. The decision expands the practical interpretation of statutory trust compliance requirements, potentially requiring contractors to maintain separate trust accounts rather than relying solely on internal accounting records.