ARTICLE · 28 APRIL 2020

COVID-19 – Update: Changes to Release of Holdbacks?

Goldman Sloan Nash & Haber LLP

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Recent changes which may suspend the time periods for preserving and perfecting lien claims under the Construction Act (the "Act") and, under its predecessor legislation,...

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Recent changes which may suspend the time periods for preserving and perfecting lien claims under the Construction Act (the “Act“) and, under its predecessor legislation, the Construction Lien Act (“CLA”), have been implemented in response to the COVID-19 crisis, by virtue of the passing of the Emergency Management and Civil Protection Act (the “Regulation“) in Ontario.

These changes are retroactive to March 16, 2020, and although still subject to final judicial interpretation and until then somewhat controversial among construction lien experts, may suspend the existing requisite time periods for a maximum period of 90 days, subject to further extension in certain circumstances.

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