Construction Lien Act: Proposed Change Highlights

The Ministry of the Attorney General recently released a report reviewing Ontario's Construction Lien Act.

While the Ministry supports maintaining the current lien/holdback regime, it also recommends establishing a new statute to address additional matters relating to security of payment and efficient dispute resolution in the construction industry.

The recommendations will – if adopted – affect most participants in the construction industry, particularly owners, lenders and their legal advisors.

Highlights include:

1. Preservation and perfection of liens would be extended 45 to 60 days in the case of preservation and from 45 to 90 days from the last day upon which the lien could have been preserved;