Construction Lien Basics for Subcontractors

For most Subcontractors, even the thought of registering a construction lien can be daunting. This uneasiness is often due to a lack of knowledge regarding the process and procedures of bringing a lien.  To help ease this uncertainty, I will provide a brief outline of the important dates and information needed to bring a successful construction lien.

The most important piece of information every Subcontractor should know is when their right to register a construction lien will expire.  In Ontario, a Subcontractor has 45 days from the date of last supply to register a lien.  The date of last supply can be either the last date when materials were delivered to the site or when men were on site completing contract work. It is important to note that any work on the completion of deficiencies cannot be used to extend the date of last supply.

After a lien has been registered, a Subcontractor has 90 days from the date of last supply to perfect the lien.  Perfection requires that a Statement of Claim and Certificate of Action be issued in the Superior Court of Justice.  Once the Statement of Claim and Certificate of Action have been issued, the Certificate of Action must be registered on title to the lands against which the lien was registered.

Once these two steps are completed, a valid construction lien exists. The Subcontractor now has priority over any holdback monies payable to the General Contractor by the Owner.

If a Subcontractor is considering registering a construction lien, a lawyer will need the following information:

1. Legal corporate name and address;
2. The name and address of the owner of the land the work is being done on;
3. The name and address of the contractor to whom services were supplied;
4. The first date that men or materials were on site as well as the date of last supply;
5. A brief description of the work completed;
6. The total contract price with extras and HST; and
7. The total amount due and owing to the Subcontractor;

For more information on whether you should consider registering a construction lien or if you have any questions regarding the above information, please feel free to contact me directly.

Teena Belland

Associate with the Personal Injury and Litigation Group

Disclaimer: This article is provided as an information resource. This article should not be relied upon to make decisions and is not intended to replace advice from a qualified legal professional. In all cases, contact your legal professional for advice on any matter referenced in this document before making decisions. Any use of this document does not constitute a lawyer-client relationship