Discharging A Builders' Lien: Is Cash King?

Posting either a lien bond or cash as security to discharge a builders' lien is standard practice in Alberta. Seemingly, this is because the lien claimant is not prejudiced by the posting of one form of security over the other.

But is a lien bond as good as cash? Is a lien claimant in a worse position if a lien bond is accepted as security? The Manitoba Court of Queen's Bench was faced with this scenario in Bird Construction Group v. Trotter and Morton Industrial Contracting Inc., 2021 MBQB 233.

Background

Bird was the general contractor in the construction of a wastewater treatment plant for the City of Selkirk. The project was being constructed on Crown lands. Trotter and Morton was the major subcontractor on the project.