legal matters
CONSTRUCTION LAW
Q
I am a contractor involved mainly with home renovations. I have heard that there are new laws coming into force with respect to construction lien claims. Is this true?
A
Although some minor amendments have been made to the Construction Lien Act (CLA) over the years, the last major amendments to CLA were made in 1983. It is true a complete overhaul of the lien provisions and other related matters under the CLA have passed through the legislature (Bill 142) and it is only a matter of time before the new provisions will become law.
The entire process for addressing disputes arising on a construction project - big or small - have been amended. There are specific requirements for submitting ‘proper invoices’; timelines for prompt payment providing ‘proper invoices’ are submitted; and notice for disputing payment. Timelines for preserving and perfecting a lien have been amended and there is a new early mandatory dispute resolution process that involves summary arbitration. These are only some of the highlights of the changes.
If you work in the construction industry you should become familiar with the new changes that are anticipated to come into force later this year.
I would recommend all people in the construction industry attend a seminar or read up on the changes or speak to a lawyer who specializes in construction disputes as these changes are significant. If you don’t know the process ahead of time you will likely miss important statutory notice timelines for pursuing or disputing a claim.
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