Contrats gouvernementaux

October 1, 2008

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Jules Brière
Partner, Lawyer

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M’abonner

May 6, 2026

Eight partners recognized as leaders in Canada for their expertise in infrastructure, according to Lexpert

On May 6, 2026, Lexpert recognized the expertise of five of our partners in its 2026 Lexpert Special Edition:Infrastructure. Laurence Bich-Carrière, Jean-Sébastien Desroches, Christian Dumoulin, Nicolas Gagnon, Édith Jacques, Marc-André Landry, Ouassim Tadlaoui and André Vautour now rank among Canada’s leaders in supporting economic players in the infrastructure industry. Laurence Bich-Carrière, is a member of the Quebec and Ontario Bar Associations, Laurence Bich-Carrière practices within the Litigation and Dispute Resolution group, in a versatile civil and commercial litigation practice specializing in complex litigation (class actions, appeals, extraordinary remedies, private international law). Jean-Sébastien Desroches practises business law and focuses primarily on mergers and acquisitions, infrastructure, renewable energy and project development as well as strategic partnerships. He has had the opportunity to steer several major transactions—complex legal operations, cross-border transactions, reorganizations, and investments—in Canada and at an international level on behalf of Canadian, American, and European clients and international corporations and institutional clients in the manufacturing, transportation, pharmaceutical, financial, and renewable energy sectors. Christian Dumoulin is a partner in the firm’s Business Law Group. He served as Managing Partner of the Sherbrooke office from 2015 to 2023 and sat on the firm’s Board of Directors from 2015 to 2017, and again in 2024. He specializes in mergers and acquisitions, commercial law and real estate law, and acts as a business and strategic advisor to clients of all sizes. Recognized for his rigour and practical approach, he supports clients in complex transactions (reorganizations, financings, sales and acquisitions, shareholder disputes). He has also been advising on infrastructure projects for more than fifteen years, including public-private partnerships, as well as on all aspects of commercial real estate law. Nicolas Gagnon focuses his practice on construction law and suretyship. He counsels contractors, public and private sector clients, professional services firms as well as surety companies at every stage of construction projects. He advises clients on the public bidding and procurement processes and participates in the negotiation and drafting of contractual documents involving various project delivery methods, such as public-private partnership projects and design, construction, financing and maintenance contracts. In addition to advising various construction industry stakeholders on construction management and any claims that may arise, he also assists them with dispute resolution processes. Édith Jacques is a partner in the Business Law Group in Montréal. She specializes in mergers and acquisitions and commercial and international law. Édith acts as strategic business advisor for medium to large private companies. Marc-André Landry is a member of the Litigation and Conflict Resolution group and focuses his practice on commercial litigation. He frequently assists his clients in resolving their disputes through negotiation, mediation or arbitration, or before the various courts of law. Over the years, he has represented businesses in many sectors, including construction, real estate, renewable energy, conventional energy, new technologies, financial services and pharmaceuticals. Ouassim Tadlaoui is a partner in the firm’s Litigation and Dispute Resolution Group and focuses his practice on banking litigation, restructuring, bankruptcy and insolvency, as well as construction surety. He represents chartered banks and other financial institutions and alternative lenders as creditors, as well as certain debtors, in bankruptcy and restructuring proceedings. He also represents and advises surety companies, as well as national and international businesses, in insolvency, bankruptcy and restructuring matters in the construction industry. André Vautour practises corporate law and commercial law, and is specifically interested in corporate governance, strategic alliances, joint ventures, investment funds, and mergers and acquisitions of private companies. He also practises technology law (drafting technology development and transfer agreements, licensing agreements, distribution agreements, outsourcing agreements, and e-commerce agreements). About Lavery Lavery is the leading independent law firm in Quebec. Its more than 200 professionals, based in Montréal, Québec City, Sherbrooke and Trois-Rivières, work every day to offer a full range of legal services to organizations doing business in Quebec. Recognized by the most prestigious legal directories, Lavery professionals are at the heart of what is happening in the business world and are actively involved in their communities. The firm’s expertise is frequently sought after by numerous national and international partners to provide support in cases under Quebec jurisdiction.

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April 20, 2026

Professional disciplinary matters: The Professions Tribunal reiterates the conditions required to accept a guilty plea

In the Henry decision rendered on January 16, 2026,1 the Professions Tribunal reiterated what framework applies to a guilty plea in disciplinary matters. In this case, the professional had pleaded guilty during his conviction hearing. After having ascertained that his pleas were made freely and voluntarily, the Disciplinary Council of the Ordre des dentistes (the “Council”) declared him guilty. However, the Council had not ensured that the professional admitted to the facts relating to the key elements of the offences at issue. During the penalty hearing, the professional raised questions about his guilty pleas. Although the Council had considered whether his pleas were valid and whether to withdraw them and return the case to a conviction hearing, the hearing continued and penalties were imposed on the professional. On appeal of the Council’s decision, the Professions Tribunal concluded that the Council had erred in accepting the professional’s guilty pleas when it had become clear that he denied the facts put forward in support of the charges against him. The Professions Tribunal concluded that the Disciplinary Council of the Ordre des dentistes had erred in accepting the appellant’s guilty plea when it had become clear that he denied the facts put forward in support of the charges against him. The Professions Tribunal reasons were based on the following: The Professional Code2 contains no specific provisions governing the entering of a guilty plea.3 In the absence of specific rules, disciplinary law can draw inspiration from the criteria developed in criminal and penal law.4 By pleading guilty, the professional waives their right to a formal investigation and associated procedural safeguards.5 Pleading guilty is a significant decision in disciplinary proceedings, as it inevitably brings the investigation to a close and has detrimental consequences on the professional who pleads guilty.6 This decision serves as a reminder of the two-prong test7 a Disciplinary Council must use to accept a guilty plea: Admission by the professional: The professional must have formally admitted to the key legal elements of the offence.8 To be valid, a guilty plea must be voluntary, unequivocal and made with full knowledge of its effects and consequences.9 Acceptance by the Council: The Council may only accept the plea after ensuring that the professional knows and understands the nature of the offence they are charged with and the effects of their guilty plea. The Council must also confirm that the professional admits to the facts relating to the key elements of the offence in question.10 This decision also introduces the requirement to submit a joint statement of the facts11 or provide an account of the facts that led to the offences in order to properly contextualize them.12 Failure to comply with these requirements could result in the professional’s guilty plea being contested or dismissed by the Disciplinary Council. More recently in the Fernandez decision,13 the Disciplinary Council of the College des médecins was called upon to rule on whether the requirements of the Henry decision applied, in particular regarding the filing of a joint statement or account of the facts giving rise to the offences. In this case, the Council had taken cognizance of the Henry decision after having accepted the professional’s guilty plea, and no joint statement had been filed. After allowing the parties to present their observations, the Council declared itself satisfied with the parties’ claims that the Fernandez case differed from the Henry case in that Dr. Fernandez had admitted to the facts relating to the essential elements of the charge, that he had filed a 17-page statement, and that the Syndic had filed documents containing the accounts of eight patients. It will be interesting to follow how case law will develop on this issue to confirm what direction the various disciplinary councils will take. The members of Lavery’s professional and disciplinary law team regularly represent professional orders and professionals. They are available to advise you and answer your questions. Summary A guilty plea may expedite the disciplinary process, but it has the effect of depriving the accused professional of certain procedural safeguards. It is important to ensure that the conditions of validity and acceptance of a guilty plea are met, otherwise it may be dismissed or overturned on appeal. Summary evidence must be taken before a professional pleads guilty, whether it be through the filing of a joint statement of facts, the presentation of an account of the facts by one of the parties or the submission of documentary evidence. Henry c. Dentistes (Ordre professionnel des), 2026 QCTP 1 2 CQLR C-26. Henry c. Dentistes (Ordre professionnel des), 2026 QCTP 1, para. 24 Id. Id. Id., para. 27 Id., para. 25 Id., para. 26 Id., para. 28 Id., para. 27 and 29. Id., para. 30 Id., para. 31 Médecins (Ordre professionnel des) c. Fernandez, 2026 QCCDMD 5

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December 10, 2025

Occupational health and safety: Understanding employers’ new obligations

The reform of the occupational health and safety system that was initiated in 2021 has reached one of its final steps as new obligations for employers come into force. As of October 6, 2025, employers must comply with several provisions of the Act to modernize the occupational health and safety regime (“the AMOHSR”), as well as the Regulation respecting prevention and participation mechanisms in an establishment (“the Regulation”), in effect since October 1, 2025. As concerns about psychosocial risks are growing in our society and, in particular, in the workplace, the need, or even the obligation, for employers to take reasonable measures to protect the health, safety and physical and psychological integrity of workers has become very important. In fact, according to a study conducted by the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST), statistics on psychosocial risks (violence, stress, harassment) show that there has been a 71.4% increase in injuries attributable to this type of risk since 2020.1 Thus, recent legislative and regulatory changes aim to strengthen the protection of workers’ physical and psychological health. They require employers to take a proactive approach in order to adapt to societal changes. It goes without saying that this approach also promises to reduce the costs arising from legal action, complaints, and claims for employment injuries made to the CNESST. Psychosocial risks in the workplace The recent amendments made by the AMOHSR explicitly recognize the importance of employers identifying, correcting and controlling psychosocial risks in the workplace, on the same footing as all other risks that may affect the health and safety of workers. The main new features of the permanent regime The permanent regime establishing prevention and participation mechanisms in an establishment is enacted by the Regulation, under the Act respecting occupational health and safety (AMOHSR). It replaces the “interim mechanisms” that initially applied when the AMOHSR came into force. The main changes concern the obligations to prepare a prevention program or action plan, to implement it and to update it. The obligations of establishments with 19 or fewer workers a) To prepare and implement an action plan. The action plan is a prevention tool intended to eliminate, at the source, dangers to the health, safety, and physical and mental well-being of workers.2 The AMOHSR stipulates that the action plan must, at a minimum, include the following elements:3 “the identification of the risks that may affect the health of the establishment’s workers, including the chemical, biological, physical, ergonomic and psychosocial risks related to the work, as well as the risks that may affect the workers’ safety; the measures and priorities for action to eliminate or, failing that, to control the identified risks, giving precedence to the hierarchy of preventive measures established by regulation as well as the scheduling to accomplish the measures and priorities; the supervision and maintenance measures to ensure that the identified risks are eliminated or controlled; the identification of the individual protective means and equipment that, in addition to being in compliance with the regulations, are those best adapted to meet the needs of the establishment’s workers; and the occupational health and safety training and information.” b) To designate a health and safety liaison officer. The liaison officer plays a key role in the establishment’s worker participation mechanism. In particular, this person collaborates on the preparation and implementation of the action plan. The liaison officer issues written recommendations to the employer and participates in the identification and analysis of risks, including psychosocial risks, that may affect the health and safety of workers.4 Obligations of establishments with 20 or more workers a) To prepare and implement a prevention program. The prevention program includes all the elements of the action plan, but is more complex and offers a long-term overview of how prevention is organized in the workplace.5 The AMOHSR specifies the minimum elements that the prevention program must include.6 In short, this program includes the following in addition to what is provided for in the action plan: Pre-employment medical checkups and medical examinations during employment Establishing and updating a list of dangerous substances and contaminants Maintaining an adequate first aid service to respond to emergencies The AMOHSR amended this program, which was initially provided for under the AROH, to explicitly include the protection of workers’ mental health by adding the analysis of psychosocial risks. b) To establish a health and safety committee. The health and safety committee (“HSC”) plays an important role, particularly in developing the prevention program, identifying risks, including psychosocial risks, and analyzing the workplace; it proposes measures to correct and control these risks.7 In the absence of an agreement between the employer and the workers, the Regulation provides for the makeup of the HSC, the procedures and methods for appointing the workers’ representatives, and the rules of operation of the HSC. c) To designate a health and safety representative. The health and safety representative is a member of the HSC and assists it in its mandates, including workplace inspections, receiving and analyzing accident reports, and identifying hazards, including psychosocial risks, for workers.8 In the absence of an agreement between the members of the HSC, the Regulation stipulates the minimum time required for the performance of the health and safety representative’s duties (which depends on the number of workers and the level of the establishment).9 The training obligation The health and safety liaison officer must participate in a theoretical training course developed by the CNESST within one year of their appointment as liaison officer.10 The health and safety representative and the members of the HSC must also complete a theoretical training course of a minimum duration of one day, delivered by the CNESST or by a person or organization recognized by it, within 120 days of their appointment.11 Note that the CNESST offers employers an information tool through its occupational health program which focuses on three increasingly prevalent psychosocial risks: violence, harassment and exposure to a potentially traumatic event. This program provides an overview of the identification of these risks and offers, as an example, a table of preventive measures that can be taken depending on the risk and the psychosocial factor concerned. 12 Conclusion By putting an emphasis on psychosocial risks and adapting the prevention mechanisms, these additions to the health and safety regime aim to guarantee a healthy and safe working environment. The legislation gives employers a transition period to comply with the new obligations. As of October 6, 2025, employers have one year to implement either the prevention program or the action plan.13 Both must be updated annually.14 These new obligations are part of a trend among legislators to enhance workplace prevention measures, focusing in particular on worker participation, training, and information sharing. To that end, the Regulation respecting the measures to prevent or put a stop to sexual violence was published in draft form on October 29, 2025.15 Employers will have new obligations regarding the information they must provide to workers, particularly concerning workplace risks that have been identified or analyzed in relation to situations of sexual violence.16 Furthermore, under this draft regulation, a procedure for handling complaints or reports will need to be established, as well as specific training on situations of sexual violence.17 Companies must assess and adjust their practices in order to meet these new obligations. Commission des normes, de l’équité, de la santé et de la sécurité du travail, Statistiques sur les risques psychosociaux liés au travail (statistics on work-related psychosocial risks), October 2025. S. 147 AMOHSR inserting s. 61.2 of the Act respecting occupational health and safety (“the AROH”). Ibid; CNESST, Contenu du plan d’action (content of an action plan). S. 167 AMOHSR inserting s. 97.2-97.3 of the AROH. CNESST Comment se préparer à nos nouvelles obligations en santé et en sécurité au travail? (how to prepare for the new occupational health and safety obligations) October 2025, p. 7. S. 144 AMOHSR amending s. 59 of the AROH; CNESST. Contenu du programme de prévention. S. 150 AMOHSR replacing s. 68 of the AROH; s. 154 AMOHSR amending s. 78 of the AROH. S. 161 AMOHSR replacing s. 87 of the AROH; s. 163 AMOHSR amending s. 90 of the AROH. Section 7 of the Regulation. S. 167 AMOHSR inserting s. 97.5 of the AROH. Sections 34-36 of the Regulation. CNESST. Programme de santé au travail(occupational health program), October 2025. Section 4 of the Regulation. Section 5 of the Regulation. GAZETTE OFFICIELLE DU QUÉBEC, October 29, 2025, Vol. 157, No. 44 Section 3 of the draft Regulation respecting the measures to prevent or put a stop to sexual violence (“Draft Regulation”). Sections 4-6 of the Draft Regulation.

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October 6, 2025

The ABCs of Expropriation: an Overview of the Different Regimes

What is expropriation? Expropriation is a legal process by which a public authority can compel a property owner to surrender private property for reasons of public interest. Governed by both provincial and federal legislation, expropriation is designed to facilitate infrastructure projects that are essential to society’s collective well-being. Although expropriation is necessary for urban development and land use planning, it must be done with due respect for the rights of landowners. For example, it must provide for the payment of fair and equal compensation that takes various factors into account, such as the market value of the property and the costs associated with moving it. The expropriation process is governed by strict rules intended to strike a balance between public needs and individual rights, and to guarantee fairness and transparency. Expropriation is an exceptional means of acquiring rights of ownership. It makes it possible for various government bodies to acquire land. The power to expropriate is necessary for projects of public interest, such as the construction of roads, schools and other public infrastructure. What property can be expropriated? Expropriation involves the ownership rights over immovable property or the dismemberment of the right of ownership attached to an immovable. The government can expropriate all rights of ownership covering immovable property, save for a few exceptions: The domain of the State cannot be expropriated, and the power to expropriate cannot be used in the presence of a reserve, which prohibits any construction, improvement or addition to an immovable for the term of the reserve, save for necessary repairs. Certain movable property can also be expropriated. In Quebec, the expropriation of rights in an immovable may include movables that are accessory to the immovable or used as part of the agricultural, commercial, industrial or institutional activities that the expropriated party carries out on the immovable. Federal and provincial jurisdiction over expropriation The Canadian Constitution does not assign exclusive jurisdiction over expropriation to any particular level of government—in our case the provincial or federal legislative authorities. Both have the power to expropriate in accordance with their respective areas of jurisdiction. Just like Quebec does, the other Canadian provinces have their own expropriation laws. In Quebec, article 952 of the Civil Code of Québec stipulates that no owner can be compelled to transfer their ownership except by expropriation in accordance with the law for public utility and in return for just and prior compensation. This provision points to the exceptional nature of expropriation, as, after expropriation, the owner is deprived of all of the attributes of its property. In fact, no one can expropriate without an enabling law. The legal framework regarding expropriation in Quebec has undergone major changes in recent years. The province’s main expropriation regime was formerly set out in the Expropriation Act, assented to in 1973. That law was replaced by the Act respecting expropriation (hereinafter the “ARE”) in 2023. The ARE establishes a new framework for the expropriation of rights, among other things.Significant changes were made to the Quebec regime, in particular in terms of procedure and indemnity calculation. Other Quebec laws also provide for expropriation by other entities, such as the Cities and Towns Act, the Municipal Code of Québec and the Act respecting municipal industrial immovables. The federal power of expropriation is restricted to federal heads of power as set out in section 91 of the Constitution Act 1867. The power to expropriate granted by the Expropriation Act (hereinafter, the “Federal Act”) belongs to the federal Crown.1 *** In this text, we will examine the scope and implications of expropriation laws and distinctions between these laws to better understand them. We will begin by analyzing the legal provisions that define the circumstances under which expropriation is warranted. We will then review indemnity mechanisms and available recourses. We will finish by describing the administrative and judicial proceedings that govern the expropriation process. Our analysis will provide a better understanding of how these laws fit into the broader legal context. The ABCs of Quebec's expropriation regime Quebec approach The ARE stipulates that every expropriation must be decided or authorized beforehand by the government, on the conditions that it determines. Once these authorizations have been obtained, the expropriating party may proceed with the expropriation by resolution, order or regulation. The power to expropriate may also be granted to other non-governmental entities, such as municipalities, metropolitan communities, school service centres or school boards, which are not required to obtain an authorization. In addition, certain public bodies, such as Hydro-Québec, have the power to expropriate. Under the terms of the ARE, if the expropriation concerns an entire lot, the expropriation procedure begins with the filing of an extract from the cadastre of Québec showing the expropriated immovable with the Administrative Tribunal of Québec (hereinafter, the “ATQ”). Expropriating more than one right requires the filing of a general plan. After the first filing, the expropriating party must send a notice of expropriation (hereinafter, the “expropriation notice”) to the holder of a right in the expropriated immovable. The date of service of the expropriation notice is the date of expropriation. This date is important—it is generally the cutoff date for calculating indemnity. The expropriation notice must contain certain mandatory information, including the description of the expropriated immovable, the purpose of the expropriation and the date on which the property is to be vacated. The vacancy date corresponds to the date on which all divested parties must have vacated the immovable and the date on which the expropriating party becomes the owner. In addition, an initial detailed declaration must accompany the expropriation notice, which must indicate the amount of indemnity the expropriating party is offering and be broken down according to the compensation items applicable to the divested party’s situation. The initial detailed declaration must also indicate at least the market value of the expropriated right. The introduction of the concept of “market value” is a departure from the previous law. Once the expropriation notice has been received, the expropriated party has four months to file its own detailed declaration with the ATQ, setting out the compensation items they wish to claim. They must also inform the expropriating party of the presence of lessees or occupants, and of leases and written agreements entered into with lessees of the expropriated immovable, within 30 days of the date of expropriation. The expropriating party must then serve a notice to vacate on the lessee or occupant in good faith, accompanied by the initial detailed declaration, indicating an amount at least equal to three months’ rent if the expropriated immovable contains the lessee’s or occupant’s residence. The expropriating party must register the expropriation notice in the land register no later than 30 days after the expropriation date. If the expropriating party fails to do so, any interested party may apply to have the registration of the expropriation notice cancelled. Compliance with this time limit is important, as damages may be awarded to the expropriated party to compensate for the injury resulting from failure to comply. Also, the expropriated party may contest the expropriation in the 30 days that follow the expropriation date and request the cancellation of the expropriation notice. The request must be served on both the expropriating party and the ATQ. The contestation process is set out below. The expropriating party takes possession of the property when it registers a notice of transfer in the land register, which corresponds to the vacancy date indicated in the expropriation notice. Such notice of transfer cannot be published before the initial provisional indemnity has been paid, or before the vacancy date. If these conditions are not met, the Land Registrar will refuse to register the notice. The divested party may, for serious reasons, apply to the Superior Court to remain in possession of the expropriated immovable for a certain amount of time, which may not exceed six months, but only if this does not cause serious prejudice to the expropriating party. Summary of changes regarding indemnification The coming into force of the ARE has changed the rules regarding indemnification. Under the previous law, the principle of indemnification was calculated based on “value to the owner,” whereas indemnification is now calculated on the property’s market value. This marks a significant change in direction for all judicial and administrative decisions. Previously, a presumption favouring compensation applied.2 Now, under the ARE, the indemnities awarded are governed by a specific analytical framework, with defined calculations and distinct compensation approaches. As it now applies, the ARE provides that the indemnity must be determined based on the expropriated property’s market value. The expropriating party has the burden of proving the market value of the expropriated right, while the expropriated party has the burden of proving all other elements constituting the final indemnity. Market value in this context corresponds to the most probable sale price of the right, established as at the date of expropriation according to the highest and best use of the right in a free and open market. The highest and best use corresponds to the use of the right as at the date of expropriation, or to the use determined by taking into account certain criteria. Different indemnities may be paid to compensate the expropriated party. An initial provisional indemnity corresponding to an amount at least equal to 100% of the market value indicated in the expropriating party’s detailed declaration must be paid to the divested party so that it may continue its activities and limit the inconveniences resulting from the expropriation. This indemnity is equal to 100% of the market value of the expropriated right. If the indemnity is insufficient, the expropriated party may apply for a supplemental provisional indemnity. The final indemnity, indicated in the detailed declaration, is made up of the immovable indemnity, the indemnity in reparation for injuries, the indemnity for loss of suitability value and the indemnity for trouble, nuisance and inconvenience. Immovable indemnity This indemnity consists of the market value of the expropriated right and, if applicable, one of the following indemnities determined in accordance with the divested party’s situation: the displacement indemnity, in the case of an indemnity established according to the approach based on displacement of a structure; the redevelopment indemnity, in the case of an indemnity established according to the approach based on redevelopment of an immovable; the enterprise closure indemnity, in the case of an indemnity established according to the approach based on discontinuance of an enterprise; the equivalence indemnity, in the case of an indemnity established according to the approach based on relocation; indemnity for the replacement of buildings and improvements, established according to approach based on the re-establishment theory; indemnity for another use.These indemnitiesare determined in accordance with the different approaches set out in the ARE. Lessees and occupants in good faith are entitled to the redevelopment indemnity, enterprise closure indemnity or equivalence indemnity. Indemnity in reparation for injuries The indemnity in reparation for injuries corresponds to the actual cost at present value of material injuries directly caused by the expropriation and suffered by the expropriated party. Indemnity for loss of suitability value The Indemnity for loss of suitability value corresponds to the loss suffered by a divested party given the personal value the divested party attributes to the immovable and that a buyer normally does not take into account. This indemnity is capped at $32,422.00, subject to indexation. Indemnity for trouble, nuisance and inconvenience The indemnity for trouble, nuisance and inconvenience corresponds to the value of direct, material and certain damages sustained by the divested party and caused by the expropriation procedure, in particular for that party’s loss of time to prepare for the case and participate in meetings. This indemnity may only be claimed by certain divested parties and is capped at $10,807.00, subject to indexation. The expropriated party has to prove which approach applies its case. Once the evidence is presented, the ATQ decides in accordance with the applicable approaches having been proven. Contestation In the 30 days following the date of expropriation, the expropriated party may contest the expropriating party’s right to expropriate and request the cancellation of the notice of expropriation by filing an application with the courts of the district in which the expropriated immovable is located. Said application must be served on the expropriating party and on the ATQ, and must be heard and decided urgently. The new law respecting expropriation provides that a contestation of the right to expropriate does not automatically stay the expropriation procedure, unless the court, at the request of the expropriated party, so orders. Previously, the situation was reversed—contesting the right to expropriate stayed the expropriation procedure. Although section 17 of the ARE does not set out any criteria applicable to an application for a stay, the Superior Court has indicated that the party seeking the stay must demonstrate that it has an arguable case, that it will suffer serious or irreparable harm if the stay is not granted, and that the balance of convenience tips in its favour.3 If the expropriated party’s application is granted, the expropriation notice registered in the land register will be cancelled, and the divested parties will be entitled to apply to the ATQ for damages to compensate for the prejudice resulting from the expropriation procedure. The ABCs of the federal expropriation regime Federal approach to expropriation The Federal Act confers the power to expropriate to the Crown. The Federal Court has described the decision to expropriate as highly discretionary and political in nature.4 The Crown’s power to expropriate is, as such, very broad. It covers all land in Quebec. In the Federal Act, the term “land” is defined as including land, mines, buildings, structures, fixtures and objects that are immovable within the meaning of Quebec civil law. In certain situations, the Minister of Public Works and Government Services (hereinafter referred to as the “Minister”) may deem any land to be required for a public purpose. In this context, the Minister makes a formal request to the Attorney General to initiate the expropriation process. As soon as the Minister makes the request, the formal federal expropriation process is set in motion, and the Crown can take the steps necessary to expropriate the land in question. On receiving the Minister’s request, the Attorney General registers a notice of intention to expropriate with the office of the registrar in the registration division where the land is situated. The notice must contain a statement regarding the Crown’s intent to expropriate the right in question. It must also describe the land in question and indicate the nature of the right to be expropriated. Lastly, it must indicate the public work or other public purpose for which the right is required. After the notice is registered, the Attorney General must provide the Minister with a report setting out the names and last known addresses, if any, of persons appearing to have a right in the land. After registration of the notice, the Minister has 30 days to publish the notice of intention to expropriate in at least one issue of a publication in general circulation in the region where the land is located. In addition, a copy of the notice must be sent to the persons whose names appear in the Attorney General’s report as soon as possible after registration of the notice. The notice and any other document intended for a third party must be sent by registered mail to the latest known address. The Minister must then have the notice published in the Canada Gazette. The notice is deemed to have been given on the date of publication in the Canada Gazette. The Federal Court has described the power to expropriate conferred by the Federal Act as a broad discretionary power to assess and decide what is in the “public interest”, and what immovable real rights are required for this purpose. As such, contesting an expropriation can be difficult. The Federal Act provides that any person wishing to object to the expropriation may do so no later than 30 days from the day on which the notice of intention to expropriate is published in the Canada Gazette. They must give the Minister their notice of objection in writing, indicating their name, address and the nature and reasons for their objection, as well as the nature of their interest in objecting to the proposed expropriation. At the end of the 30-day period, if an objection has been served, the Minister must order a public hearing on the objection received. The Attorney General must then appoint a hearing officer to conduct the hearing. The hearing officer must fix the date, time and place for the public hearing no later than seven days of their appointment, and must give every person who has served notice of objection to the Minister an opportunity to be heard. The hearing officer may also inspect the land to which the notice relates. The hearing will be conducted in the manner determined by the hearing officer. Once the hearing is over and no later than 30 days after their appointment, the hearing officer must submit a written report to the Minister on the nature and grounds of the objections made. After the public hearing, or if no objection is filed within 30 days, the Minister may confirm or abandon the intention to expropriate. However, if the Minister has not confirmed his intention on expiry of 120 days after the day notice was given, the Minister is deemed to have abandoned the intention. In the event of abandon, the Minister must have a notice of abandonment of the intention sent to the persons concerned and to the Attorney General. In the event of confirmation, the Minister must ask the Attorney General to register a notice of confirmation of intention to expropriate (hereinafter, the “confirmation notice”). Once the confirmation notice has been registered, the Minister must send a copy to all persons appearing to have a right in the land and to all persons having served an objection. Upon registration of a confirmation notice, the right becomes absolutely vested in the Crown. Within 90 days of the registration of the confirmation notice, the Minister must make a written offer of compensation to all persons who actually have an interest in the land. The Crown takes possession of the land once the procedure is complete. Amounts paid in compensation Compensation is paid to each person who, immediately before registration of a notice of confirmation, was the holder of an interest in the land to which the expropriation notice relates. The compensation amount is equal to the aggregate of the following amounts: The value of the expropriated right or interest on the date of its taking by the Crown: based on market value, i.e., the amount that would have been paid for the right or interest if it had been sold in the open market on the date of its taking by the Crown. The amount of the decrease in value of the remaining property of an owner: obtained by subtracting from the value of all the immovable real rights or interests in land that the holder had immediately before the taking of the expropriated right or interest the sum obtained by adding the value of the expropriated right or interest and the value of all the remaining immovable real rights or interests in land immediately after the time of taking of the expropriated right or interest. The reference date for calculating compensation is generally the date on which the confirmation notice was registered. The Crown also pays to each person entitled to compensation an amount equal to the appraisal, legal and other costs reasonably incurred by that person in asserting a claim for such compensation. The Federal Act provides a mechanism for negotiating compensation, when the person entitled to compensation and the Minister are unable to agree on the amount of compensation. After an offer of compensation has been made and within 60 days of the offer, either party may serve notice on the other to negotiate compensation. The awarding of compensation under the Federal Act therefore differs significantly from that under the ARE, although market value is also central to the indemnity awarded under the ARE. Railway companies The procedure is different for railway companies. They must first make a request to the federal Minister of Transport regarding the immovable real right or interest in land, which they have unsuccessfully attempted to purchase. The Minister of Transport then recommends expropriation to the Minister of Public Works and Government Services, who must then have the Crown expropriate the immovable real right that the railway company was unable to acquire. Conclusion There are a number of differences between the applicable regimes. A legislative duality such as this can result in inequity, leading to different results for expropriated parties in similar situations, and for expropriating parties. As we explained, the criteria used to assess compensation, the procedures used to determine compensation and the recourses available may vary considerably from one law to another. An expropriated party may therefore obtain different compensation depending on the applicable regime, even if the objective conditions regarding their expropriation are comparable to those of another expropriated party under a different regime. For more information, or if you have any further questions, please feel free to contact our team. We will be happy to assist you and provide you with the information you need regarding any expropriation procedure. This text only covers the Federal Act’s application in Quebec. Toronto Area Transit Authority v. Dell Holdings Ltd, [1997] 1 SCR 32. Société immobilière 2081-2083 Marie-Victorin inc. c. Ville de Varennes, 2024 QCCS 3969, para. 15. Vachon (Succession) v. Canada (Attorney General), 2024 FC 709.

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October 3, 2025

Public construction: Prompt payments and simplified dispute resolution

On July 30, 2025, the Regulation respecting prompt payments and the prompt settlement of disputes with regard to construction work (hereinafter the “Regulation”) was published in the Gazette officielle du Québec. Since September 8, 2025, the Regulation has been coming into force gradually,1 in response to requests from some involved the construction industry. The Regulation applies to the majority of construction contracts concluded with public bodies covered by the Act respecting contracting by public bodies (chapter C-65.1, r. 8.01) (hereinafter the “ACPB”). The Regulation aims to fix chronic payment delays in the construction industry by establishing binding standards to speed up the payment process for contractors and subcontractors involved in public contracts covered by the ACPB. It also introduces a rapid dispute resolution process. The Regulation thus complements An Act mainly to promote Québec-sourced and responsible procurement by public bodies, to reinforce the integrity regime of enterprises and to increase the powers of the Autorité des marchés publics.2 The following is a summary of some of the Regulation’s key provisions. Cases of application and exclusions The Regulation applies to all public construction contracts and subcontracts subject to the ACPB, with the following exceptions:3 contracts entered into in an emergency because of a threat to the safety of persons or property contracts entered into for the purpose of activities on foreign soil of a delegation general, a delegation or another form of representation of Québec abroad a monetary claim to compensate for a loss of profit, productivity or a business opportunity that a contractor considers it has suffered because of a change relating to the scope of the work specified in a public contract or public subcontract, or to the conditions for its performance Deadlines and schedule imposed by the Regulations The Regulation establishes a rigid payment request, refusal and payment schedule: Request for payment4 Sent by the general contractor to the public body: 1st day of the month Sent by the subcontractor to the general contractor: 25th day of the month Refusal to pay5 Sent by the general contractor to the subcontractor: 21st day of the month Sent by the public body to the general contractor: Last day of the month Payment deadline (if applicable)6 By the public body to the general contractor: Last day of the month By the general contractor to the subcontractor: 5th day of 2nd month From a subcontractor to another: 10th day of 2nd month If the subcontracting chain has more than two subcontracting levels, the payment deadline is extended by five days for each additional level. These deadlines are intended make the payment process uniform and predictable. It is possible for parties to amend their requests after they have been sent.7 Request for payment A request for payment must be in writing and contain the following information : the name and address of the contractor and the contact information of the representative of the contractor the number of the public contract a detailed description of the work carried out, the expenses incurred and any other element for which a sum of money is claimed the periods associated with elements claimed a breakdown of the total amount claimed8 If the public body requires the presentation of supporting documents with a request for payment from a contractor party to a contract, it must include such condition in the contract and specify which documents are required. The same principle applies to subcontracts between contractors and their subcontractors.9 Importantly, the public body may allow the contractor to amend the request for payment to correct any deficiency, except for requests rendered invalid by the date on which they were sent. If no question of invalidity has been raised with the contractor before the deadline to indicate a refusal to pay, the payment request will be deemed valid.10 Refusal to pay A refusal to pay must be expressed in a written notice containing the following information: the part of the total amount claimed that is refused a description of the work, expenses or elements of the request for payment to which the refusal applies the grounds for the refusal and the contractual or legal provisions on which they are based11 The refusal of a request for payment cannot be based solely on the fact that the work carried out is the result of a change to the contract and that, when the request for payment was sent, the value of the change had yet to be agreed on or determined.12 Payments and withholdings In certain circumstances, the public body may withhold any sum claimed by the contractor: A sum sufficient to cover any reservations for apparent defects or poor workmanship in the work.13 A sum sufficient to repair any damage caused by the general contractor or a subcontractor to the work.14 A sum previously paid to the general contractor for work performed by one of its subcontractors to ensure that the latter’s claims are paid by the general contractor or to enable the public body to pay these claims itself. This right to withhold exists regardless of whether the subcontractor can invoke a legal hypothec on the construction or not.15 A sum sufficient to pay the claims of persons other than the contractor’s subcontractors can invoke a construction legal hypothec on the work and who have given notice of their contract to the contractor, for work completed or the materials or services supplied after the notice was given.16 Up to 10% of the sum owed to ensure performance of the contract, provided that this possibility and its terms are stipulated in the contract. A general contractor may, in turn, withhold sums from its subcontractors, provided that a written agreement allows this and that the withholding does not exceed the withholding applied to the contractor by the public body. Each level of subcontracting can avail itself of this right, with the necessary modifications.17 All sums payable to the contractor if it has not provided all closeout documents, including the certificate issued by the CNESST in accordance with the law and final acquittances from subcontractors.18 Except in the last two cases, a general contractor may offer the public body sufficient security in lieu of the withholding, such as a bond or a letter of guarantee from a bank. In turn, the general contractor may deduct from a payment owed to one of its subcontractors an amount representing the sum claimed by that subcontractor for work, where that work has been identified in a notice of refusal issued by another debtor in the contracting chain. To avail itself of this right, the contractor must first have sent the subcontractor a copy of the notice of refusal on which it is relying.19 Subcontractors, for their part, must send the notice of deduction to their own subcontractors, if any, within two days of receiving the notice.20 In all cases, the Regulation provides for the release of the deductions applied when the conditions for release are met. Prompt dispute settlement The Regulation introduces a dispute settlement process by which the parties have recourse to a third-person decider after having attempted to settle the dispute amicably.21 Initiated by a “request for intervention,” the process is intended to be rapid, with decisions to be made within 50 days of the designation of the third-person decider.22 More specifically, this mechanism provides for the following stages and deadlines: Stages Time allowed Request for intervention 90 days after work accepted or completed* Other contracting party’s response 5 days Designation of the third-person decider 5 days Outline of claims by applicant 5 days Detailed response from other contracting party 15 days Decider’s decision 50 days from the designation date (this period may be extended for a maximum of 15 days) Payment, if any 20 days after decision rendered * In the case of a contract between a general contractor and a public body, the request for intervention must be notified to the other contracting party no later than 90 days after the date on which the work was accepted without reservation, or, if accepted with reservation, the date on which the public body declares that it is satisfied with the repairs or corrections made to the work. In the case of a subcontract, the request for intervention must be notified no later than 90 days from the date the work the parties agreed on is completed.23 The Regulation also provides for the following: One dispute, one request for intervention – Although a request for intervention can relate to one dispute alone, a party cannot dissociate the constituting elements of the dispute in order to file multiple requests or otherwise act to abuse the right to have recourse to a third-person decider. Choice of third-person decider – Only persons whose names appear in the register kept by the Minister of Justice under the Regulation may act as third-person deciders. It is up to the party proposing a third-person decider to ensure that the person is available. In the event of disagreement, the parties draw lots. Procedure – As long as they ensure that the procedure is equitable and complies with the principle of proportionality, the third-person decider can conduct the intervention according to the procedure they determine. Also, unless the third-person decider decides otherwise, the proceedings are conducted orally, whereas testimony is given by way of a written affidavit. No lawyers – Parties cannot be represented by a lawyer during proceedings, although a lawyer may advise them. Confidentiality – The entire intervention remains confidential, subject to agreement between the parties or legal obligations. Third-person decider’s fees – As a general rule, the third-person decider’s fees are allocated equally between the parties (50-50), although the third-person decider may depart from this allocation if they consider that a party’s actions during the intervention were harmful, in particular because of abusive conduct or failure to meet deadlines. The third-person decider’s fees are capped according to the value of the dispute. Conclusion This new compulsory scheme now imposes, for cases covered, a prompt payment process and speeds up the settlement of disputes arising during the performance of the majority of public construction contracts. It will have major repercussions on the practices of contractors, subcontractors and public bodies alike. The imposition of the strict deadlines by the Regulation could require contractors and subcontractors to improve their internal processes to better process payment requests and properly document potential claims. Although the Regulation is intended to simplify and accelerate payments, some contractors and subcontractors may find it difficult to meet the imposed deadlines, especially in large-scale projects involving many stakeholders, as delays are likely to be passed on from one level of subcontractor to another. Whether this system will be successful will depend on the ability of the parties to quickly adapt to the new requirements and to make effective use of the third-person decider to resolve disputes. If you have any questions or need advice, we invite you to contact a member of our specialized construction law team at Lavery. Section 94 of the Regulation. SQ, 2022, c. 18. Sections 32 and 33 of the Regulation. Section 5 of the Regulation. Section 10 of the Regulation. Section 15 of the Regulation. Sections 7 and 8 of the Regulation. Section 5 of the Regulation. Section 6 para. 1 of the Regulation. Section 6 of the Regulation. Section 11 of the Regulation. Section 12 para. 1 of the Regulation. Section 22 of the Regulation. Section 23 of the Regulation. Section 25 of the Regulation. Section 26 of the Regulation. Section 20 of the Regulation. Section 28 of the Regulation. Section 16 of the Regulation. Section 16 of the Regulation. Sections 34 to 76 of the Regulation. Section 63 of the Regulation. Section 34 of the Regulation.

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