Following Ontario's recent Order suspending limitation and
procedural time periods, there has been some uncertainty regarding
whether liens in Ontario continue to expire in the ordinary course.
The Attorney General has now confirmed that they do.
On March 20, 2020, the Ontario Government issued an Order under
Subsection 7.1(2) of the Emergency Management and Civil
Protection Act suspending limitation periods and procedural
time periods in Ontario (the "Suspension Order"). It was
initially unclear whether the Suspension Order applied to the
timelines established under the Construction Act, formerly
the Construction Lien Act (the "Act").
Many in the construction industry were concerned about the impact
of the Suspension Order on the flow of funds on construction
projects. If the Suspension Order had applied to lien periods, the
holdback period established under the Act would not
expire, and holdback funds could not be released. Undoubtedly this
would have put
