Many construction companies do not realize that the area of construction law is extremely time sensitive. According to the Construction Lien Act of Ontario, in the majority of cases an individual or a company with lien rights over a project must preserve their rights within 45 days of whichever of the following events occurs first:
i) the last day they supply materials or services to the project;
ii) the day that a certificate or declaration of substantial completion of the project is published;
iii) in the case of a subcontractor, the date on which the subcontract is certified complete; or
iv) in the case of the general contractor, the date the project is abandoned.
Because the relevant date is the earliest of these events it can be easy to miss. Preserving a lien rights is done at the Land Registry Office and can be done in a short amount of time once it is determined necessary. If a company or individual fails to register their lien they can still make a claim in court for money owed to them. The advantage of having a lien is that it is registered against the title to the property where the project was done, this makes it difficult for the owner of the property to deal with their land until the dispute is settled.
Based in Kanata, the law firm of Connolly Nichols Allan & Snelling provides corporate & commercial, real estate, family, criminal, and civil litigation services (including construction law) throughout Ottawa and the surrounding area.