On Friday May 1, 2020, the Government of Ontario announced that certain businesses and workplaces would be permitted to reopen, provided they adhere to strict health and safety guidelines designed to curb the spread and impact of COVID-19. The list of permitted workplaces includes construction-related projects that fall within the following categories:

• Shipping and logistics;
• Broadband, telecommunications and digital infrastructure;
• Any other project that supports the improved delivery of goods and services;
• Municipal projects;
• Colleges and universities;
• Childcare centres;
• Schools; and
• Site preparation, excavation, and servicing for institutional, commercial, industrial and residential development.

Construction projects that meet any of the foregoing criteria will be permitted to operate as of 12:01 a.m. EDT on Monday, May 4, 2020.

The government’s announcement comes as various provinces have begun to loosen the restrictions on the nature of and circumstances under which certain businesses are permitted to operate in the face of COVID-19. Other provinces have warned that restrictions on business operations may be re-introduced if required by the public health climate. Indeed, A Framework for Reopening our Province that was released by the government on April 27, 2020, states that the Chief Medical Officer of Health “may advise to reapply or tighten certain public health measures in response to a surge in cases or outbreaks.”

Practically, parties will need to consider the impact of the interruption on their projects, and how to appropriately and cost-effectively remobilize forces to projects that are now allowed to proceed pursuant to the latest government announcement. Furthermore, parties will need to consider the importance of adhering to strict health and safety guidelines, and coming up with creative solutions to protect the health and welfare of the workers on the project. As previously noted by the Government of Ontario, the Ministry of Labour has increased the number of inspectors, and the fines associated with non-compliance remain in place.

As a result, industry should continue to exercise caution around the planning and execution of the construction projects listed above and remain prepared for the possibility that restrictions are re-imposed by the government in the future. We have previously written about certain measures that the construction industry can take to weather project disruptions caused by the COVID-19 pandemic and how the prompt payment regime under the Construction Act has been impacted.

Dentons’ Construction group will continue to monitor the changes and will provide updates as they become available. If you have any questions regarding the impacts on your construction projects and business during these challenging times, please contact Karen Groulx, Fraser Mackinnon Blair, Dragana Bukejlovic or another member of Dentons’ Construction group.