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ARTICLE · 09 JULY 2018

Supplier Beware: Appropriate Payments At Your Own Risk

Cox & Palmer
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Liteco v Nova Scotia (Transportation and Infrastructure Renewal), 2017 NSSC 304

CanadaReal Estate and Construction
Cox & Palmer
Cox & Palmer
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Liteco v Nova Scotia (Transportation and Infrastructure Renewal), 2017 NSSC 304

Whether you're a general contractor, a subcontractor, or a supplier, this decision regarding the application of the Builders' Lien Act is important for your business.

In this case, a general contractor (the "GC") hired an electrical subcontractor (the "Sub") on a project to build a school for the Province of Nova Scotia. The Sub sourced its electrical supplies from a third party supplier (the "Supplier").

Before the Supplier would give materials to the Sub, it required the GC's agreement to pay the Sub by way of cheques made out to the Sub and the Supplier jointly (the "Joint Cheque Agreement"). The GC agreed.

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