(Please don't) Lien on Me

The Builders’ Lien Act is undergoing amendments through Bill 37, which is expected to be proclaimed into law in Fall 2021, becoming the Prompt Payment and Construction Lien Act. The changes will significantly impact the current practices within the condominium industry regarding payment requirements and lien rights. Some of the major changes include requiring property owners (condominium corporations) to pay contractors within 28 days of receiving a proper invoice, subcontractors to pay their subcontractors within 7 days of receiving payment, and contractors to register a lien within 60 days (except for concrete work, which will have 90 days). The minimum requirement to register a lien is increased to $700, and new rules for the payment of holdbacks on large, multiyear projects will be introduced. A new adjudication process will also be implemented to resolve disputes. The definition of a "proper invoice" is provided, emphasizing the necessary information to be included. The article advises the condo industry to tighten and streamline payment processes and establish procedures for reviewing invoices and handling disputes within the specified timelines to comply with the new legislation. It highlights the importance of adhering to lien holdback requirements and suggests consulting legal counsel for guidance and assistance in dealing with construction projects and lien-related matters.