Builders’ Lien Act Clarified
The act governs practices by owners, contractors and subcontractors for claims against a property by a business or person who has supplied labor or materials for work on it. The liens protect people from not being paid for their work or goods they provided on a project.
Previous amendments allow owners and contractors to release holdback money to subcontractors as stages of a large project are completed. Before then, commercial builders would hold back 10 per cent of the total cost and could not fully release the holdback until the entire project was complete.
Minor amendments now being made include:
— allowing an owner to continue to make payments to a contractor, up to 90 per cent, after receiving notice of a lien
— requiring an owner to pay interest if they do not make a payment within 65 days of being permitted to, after a subcontract has been certified complete
— allowing a holdback to be released if a lien has been vacated or cancelled
— aligning language introduced in the 2013 amendments with the language of the act.
To review amendments introduced in 2013, visit http://novascotia.ca/news/release/?id=20130506007 .