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This Week in Construction Law: January 17 – 21, 2022

In Ontario, the provincial government has announced a $45 million Streamline Development Approval Fund to speed the municipal permitting process for housing construction, and $8 million in new funding for the Audit and Accountability Fund, which identifies savings and efficiencies in large municipal bureaucracies. Premier Doug Ford spoke about the causes of the housing crisis and the importance of resolving it at a virtual summit. RESCON, the lobbying group for home builders in Ontario, reacted positively to the announcement, emphasizing the need for a standardized development approvals process and e-permitting system.

In Ontario, Ottawa’s municipal government has reorganized departments critical to the city’s construction industry. The city has created a new Infrastructure and Water Services Department, Public Works Department, and Planning, Real Estate and Economic Development Department, and appointed two new managers. The changes are intended to support the implementation of Ottawa’s new Official Plan, released in October 2021, and its Transportation Master Plan, which has recently been substantially revised.

In Ontario, CPL Interiors Ltd. has plead guilty to participating in a bid-rigging conspiracy involving three other companies. The conspirators are alleged to have allocated customers amongst themselves and fixed the prices of 31 condominium refurbishment contracts worth more than $19 million.

In B.C., the city of Surrey is raising the fine for illegal construction to $1,000. Offences covered include preventing an inspection, construction without a permit, occupancy without a permit, and ignoring a stop work order. Multiple tickets can be issued for the same offence on separate days. A city councillor suggested that illegal construction often occurred in the past because the permitting process was too onerous, and expressed hope that in addition to the more punitive fines, a recently streamlined permitting process would also alleviate the issue.

In Manitoba, an established Winnipeg construction company has been defrauded of approximately $400,000 after unknown parties posing as a subcontractor sent an email claiming the subcontractor’s banking information had changed, and provided new direct deposit information. The construction company is now suing the bank where the funds were initially deposited, before vanishing.

In commentary, law professor Hilary Young discusses the likely legal hurdles vaccine mandates would face in Canada, especially the inevitable court battle over whether it violates the Charter’s guarantee of a right to life, liberty, and security of the person.

In commentary, John Bleasby discusses the rapidly growing requirement for Environmental, Social, and Governance policies in all project management stages, from planning to contractor bids, and provides suggestions from industry insiders on how best to fulfill ESG requirements that are often diverse and usually taken quite seriously.

In commentary, Nicola Crema discusses the costs and benefits of including a mandatory arbitration clause in construction contracts.

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