Construction projects often involve numerous stakeholders, high-value contracts, and critical deadlines. When disputes arise—whether related to payment, performance, or delay—they can jeopardize the project’s viability and lead to serious financial consequences.
At Nihang Law, we assist homeowners, general contractors, subcontractors, developers, and suppliers in resolving construction-related disputes and securing their rights under Ontario’s Construction Act, including through construction lien litigation.
Our legal team understands the urgency, complexity, and commercial realities of construction disputes. We provide clear, strategic guidance from early negotiation through adjudication, lien enforcement, or formal litigation—always tailored to the unique needs of each client and project.
Understanding Construction Liens in Ontario
A construction lien is a statutory right available to those who supply services or materials to a property and remain unpaid. This legal mechanism allows the unpaid party to register an interest in the property, effectively placing a hold on its sale or refinancing until the claim is resolved.
Under the Construction Act, contractors, subcontractors, and material suppliers are entitled to lien protection, provided they follow strict procedures and deadlines. Liens ensure that those who contribute to the improvement of a property are not left uncompensated when disputes or financial issues arise.
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 Lien?
Lien rights in Ontario are available to individuals and entities who supply services or materials to a construction project. This includes general contractors, subcontractors, and suppliers who have a direct contract or subcontract related to the improvement of the property. Eligibility is based on the nature of the work and the relationship to the project owner or head contractor.
If you are unsure about your eligibility or the applicable deadlines, we provide prompt legal assessments to clarify your lien rights and next steps.
Comprehensive Legal Services for Construction Disputes
Construction disputes vary in scope and complexity. We offer strategic guidance and legal representation across a range of key areas:
Construction Delays and Deficiency Claims
Project delays and construction defects can lead to mounting costs and cascading contractual issues. Whether you are seeking compensation or defending against a claim, Nihang Law assesses contracts and records to determine liability and pursue timely remedies.
Scope, Specifications, and Material Conflicts
Misunderstandings regarding project scope or specifications can quickly escalate into disputes. We help clarify the parties’ contractual obligations and help resolve disputes through interpretation and enforcement of agreed-upon terms.
Construction Payment and Holdback Disputes
Payment issues are one of the most common causes of construction litigation. From unpaid invoices to lien enforcement, we assist clients with claims related to non-payment, holdbacks, and trust accounting. We also assist in enforcing lien rights and defending lien claims in accordance with Ontario’s Construction Act.
Breach of Construction Agreements
Whether due to abandoned work, missed deadlines, or poor performance, breach of contract claims require a focused and timely approach. We act quickly to assess the impact of the breach, enforce the terms of the agreement, and pursue available remedies including termination, damages, or specific performance, depending on the facts of each case.
Negligent Workmanship Claims
We represent clients in claims involving poor workmanship, unsafe construction practices, or failure to meet contractual or industry standards. These claims may arise during or after project completion and may include issues under the Ontario New Home Warranties Plan Act. Our team works closely with qualified engineers, inspectors, and other industry professionals to establish liability and pursue compensation or required remediation.
Adjudication Process Under the Construction Act
Ontario’s Construction Act provides for an adjudication process with the Ontario Dispute Adjudication for Construction Contracts (ODACC) 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 supporting documents and arguments.
- Decision: The adjudicator renders a decision, typically within 30 days of receiving the claimant’s documents.
While the decision is interim and subject to later court review, it is binding and enforceable as a court order. This process can often resolve disputes without prolonged litigation and is especially valuable in mid-project payment delays or disputes.
Nihang Law’s Approach to Construction Lien Disputes and Litigation
Construction litigation requires precision, timeliness, and a sound legal strategy. Our firm provides:
- Thorough Contract and Timeline Reviews
We carefully analyze construction agreements, change orders, correspondence, and project schedules to determine your rights and obligations. - Collaborative Work with Industry Experts
Our team liaises with qualified technical professionals to support your claim or defence with objective evidence and insights. - Strategic Enforcement Through Court or Settlement
Whether pursuing lien enforcement, contractual damages, or defending against claims, we balance aggressive advocacy with cost-effective resolution strategies—always with your business or project goals in mind.
Why Choose Nihang Law for Construction Lien Disputes and Litigation
From lien rights and trust obligations to prompt payment and adjudication procedures, we understand the evolving policies governing construction in Ontario. We represent a diverse range of clients, including general contractors, subcontractors, suppliers, developers, and property owners. Whether you are planning a project, responding to a legal threat, or initiating a claim, Nihang Law can help prevent disputes before they arise and act quickly when litigation becomes necessary.
Construction disputes are governed by strict limitation timelines. Under Ontario’s Construction Act, lien claims must typically be preserved within 60 days and perfected within 90 days. Other legal claims may be subject to a 2-year limitation period. Missing a deadline can mean losing your legal remedy altogether. Seeking legal advice early can be critical to protecting your rights.
Construction disputes can threaten project viability and long-term partnerships. Let Nihang Law protect your investment and bring clarity to even the most complex construction conflict. Contact us today to schedule a consultation.