CONSTRUCTION LIENS IN ONTARIO
Understanding Construction Liens in Ontario
A construction lien is a legal claim made by contractors, subcontractors, or suppliers who have not received payment for their services or materials supplied on a construction project. In Ontario, the Construction Act governs the process of registering and enforcing these liens to ensure that those who contribute to property improvements are rightfully compensated.
Steps to Secure and Enforce a Lien
- Preserving a Lien: To preserve a lien, it must be registered within specific timeframes, depending on when the project commenced. For projects initiated after July 1, 2018, the lien must be preserved within 60 days from the earlier of:
- The date of substantial performance of the contract.
- The date the contract was completed, abandoned, or terminated.
- Perfecting a Lien: After preservation, the lien must be perfected by initiating a court action and registering a Certificate of Action within 90 days of the last day the lien could have been registered. Failure to perfect the lien within this period may result in the loss of lien rights
Who Can File a Construction Lien?
Eligibility to file a construction lien in Ontario extends to individuals or entities who have supplied services or materials to a construction project, including:
- General contractors.
- Subcontractors.
- Material suppliers.
These parties must have a direct contract or subcontract for the supply of services or materials to the improvement of the property.
Critical Timelines and Implications of Missing Deadlines
Adhering to strict deadlines is crucial in the construction lien process:
- Preservation Deadline: As mentioned, liens must be preserved within 60 days (for projects after July 1, 2018).
- Perfection Deadline: Liens must be perfected within 90 days of the last day they could have been preserved.
Missing these deadlines can result in the forfeiture of lien rights and leave the claimant without this legal remedy for non-payment.
Resolving Construction Disputes Through Adjudication
Ontario’s Construction Act provides for an adjudication process to resolve payment disputes promptly. This process involves:
- Initiation: The claimant issues a Notice of Adjudication to the respondent and the Ontario Dispute Adjudication for Construction Contracts (ODACC).
- Appointment: An adjudicator is appointed within a specified timeframe.
- Submissions: Both parties submit relevant documents and arguments.
- Determination: The adjudicator renders a decision, typically within 30 days of receiving the claimant’s documents.
This process offers a faster alternative to court proceedings and provides interim binding decisions that can be enforced as court orders.
How Nihang Law Can Support Your Construction Lien Needs
At Nihang Law, we specialize in construction law and offer comprehensive services to assist you with:
- Assessing your eligibility to file a lien.
- Ensuring timely preservation and perfection of liens.
- Representing you in adjudication or court proceedings.
- Providing strategic advice to protect your financial interests.
Our experienced legal team is dedicated to safeguarding your rights and ensuring you receive the compensation you deserve for your contributions to construction projects.
How Nihang Law Can Support Your Construction Lien Needs
At Nihang Law, we specialize in construction law and offer comprehensive services to assist you with:
- Assessing your eligibility to file a lien.
- Ensuring timely preservation and perfection of liens.
- Representing you in adjudication or court proceedings.
- Providing strategic advice to protect your financial interests.
Our experienced legal team is dedicated to safeguarding your rights and ensuring you receive the compensation you deserve for your contributions to construction projects.
Call us today at 416-321-0353 or email info@nihanglaw.ca to schedule a confidential consultation. Let us help you navigate your construction lien matters with confidence, clarity, and care. We are here to advocate for you with experience, understanding, and determination.