Changes to Lien periods Under the New Construction Act

The new Construction Act, effective July 1, 2018, has extended the time frames for construction liens. The timeline to register a lien has been increased to 60 days, and the timeline to perfect a lien has been increased to 90 days from the date of registration, making the preservation and perfection period for a construction lien 150 days in total. The holdback remains at 10% of the value of the work, and security such as a letter of credit or holdback repayment bond can now be offered in lieu of cash. The second wave of amendments, effective October 1, 2019, will provide a mechanism for adjudicating holdback disputes and a new prompt payment regime. When considering the application of the new construction lien provisions, it is important for condominium corporations to verify whether the particular contract is subject to the new Construction Act before determining the applicable lien and holdback requirements.