Construction Liens: Watch The Clock – And Your Budget!

Across Canada, the construction lien process is fraught with challenges. For property owners, contractors and trades, construction liens can lead to project delays, reputational damage, unhappy customers, or worse – unhappy creditors. Fortunately, by clearly understanding the lien lifecycle and timeline, the process is navigable. 

What is a construction lien and who can claim one?

A construction lien is a security interest available to contractors, subcontractors, workers, architects, engineers, and material suppliers who have not been paid for their part in the "improvement." A construction lien applies to any interest the property owner has in the improvement, as well as the improvement itself, the land on which the improvement is located, and to any material delivered to the improved premises. The exact quantum of the lien is typically limited to no more than the exact amount owing to the lien claimant for their services or materials.