Whether it is a contractual dispute involving a construction lien between contractors, property owners and professionals, this area of law is complex and at times, difficult to understand. The result being that many choose a course of action that can lead to thousands of dollars in losses. Without the legal help of an experienced lawyer who is well versed in the Ontario area rules and regulations along with dealing with the Construction Lien Act, many make errors and omissions.
If you are involved in a dispute involving a construction lien, our firm provides knowledgeable and effective help to protect the rights and interests of parties who are defending against liens or are using liens to.
Changes to the Construction Act
As part of the government’s sweeping amendments on July 1, 2018, not only has the Construction Lien Act become the Construction Act, but there are drastic changes to the scope of the law governing Ontario’s construction industry. As part of Ontario’s plans to modernize the construction lien and holdback rules, along with helping making sure that workers and businesses get paid on time for their work, the new rules for owners, contractors and sub-contractors in the construction industry make more sense to rely on the Act and the protections it affords. Put together, these amendments and additions will affect all construction work in Ontario. However, several of these amendments will not take effect until October 1, 2019.
Some of the key changes include but are not limited to:
- Most contractors know that when disputes arise in regards to payment and they subsequently stop working on a project, there in 45 from when they last supplied services or materials to register a construction lien. Lawyers refer to this as preserving the claim for lien. However, under the new rules, contractors and subcontractors now have 60 days to register a lien and 90 days to start a court action. Therefore, claimants will have 150 days to register and perfect a lien.