When Calculating Lien Periods, It's Convenient To Be Prevenient

Are you out of time to register your lien? It depends!

Under section 41 of the Builders' Lien Act (the "BLA") a lien must be registered within 45 days (or 90 days for an oil or gas well or well site) after the last day services or materials are furnished. However, if you have a continuing contract, a legal concept known as a "prevenient arrangement", the work done on one property may operate to extend the time for registering a lien against all properties.

What is a Prevenient Arrangement?

A prevenient arrangement exists where there is a preliminary understanding between parties that they are entering into an ongoing relationship for the supply of services or materials over time, often at multiple locations. The parties do not necessarily have to have a binding contract, or to define all terms on which materials and services are to be supplied. Rather, the prevenient arrangement links together a series of contracts into one continuing contract.¹