2 Questions You Should Ask Before Filing a Construction Lien

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Construction liens (also known as Builders’ Liens or Mechanic’s Liens) have the greatest influence over two things – land and money. Ideally once a construction lien is filed the land will not be sold and the money/financing for project is going to stop flowing. After the lien is filed, the people managing the project are going to want to address your resolve your construction lien and non-payment issue right away because the project’s funds are held up and/or the sale of the property is delayed. 

If you are thinking about filing a construction lien, consider the following two questions:

1.       Does the project have ongoing financing?

2.       Is the property going to be sold in the near future?

Your answers to these questions will help determine if you are a good candidate to file a construction lien.  If you have answered YES to either of these questions, you are in a potentially powerful position if you file a construction lien. After you file, your construction lien will have influence over the project by either tying up the financing or delaying the sale/transfer of the property.  This will result in a higher probability that your non-payment issue will be dealt with. Liens help get you to the negotiating table.

If you have answered NO to both questions, your construction lien may not have the desired effect and power over the situation that you are hoping for. If you file a construction lien it could potentially just sit there – there is no urgency to resolve your lien. The project stakeholders are not being directly impacted by your construction lien because the financing and/or the sale of the property is not directly affected.

Registering a construction lien is not for everyone, therefore; there are alternative collection tools you can consider. Third party collections or initiating legal action through either small claims or superior court (depending on your situation) may be a better option for you. Both collections and commencing legal action can be beneficial resources to utilize to aid in the recovery of your money.

If you are still uncertain about filing a construction lien, we are always available to consult with you.  Simply give us a call to discuss your situation. We can help provide clarity and assist you with finding the most suitable option for you. 

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How to Find Your Builders' Lien Deadline

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Your eligibility to file a builders' lien has one major factor – timeline. The builders’ lien (also known as construction liens or mechanic’s liens) filing timelines, as set by each province, govern your ability to file a builder’s lien. From the moment you finish working on a project, it is essential for you to keep proper track of your lien filing deadline. NOTE: It is important to remember that your lien timeline is calculated from the last date you were on site providing work, services, labour, etc. or from the last date you supplied materials to a project. The date of your last invoice does not count toward your lien timeline. Deficiency work also does not extend your lien rights.

Once you are past your builder’s lien deadline, you cannot extend it.

Each province has different timelines to file a lien, outlined in their corresponding provincial acts – Builders' Lien Act, Builder’s lien Act, Mechanic’s Lien Act, etc. It can be difficult to keep track of the different rules and timelines for every province.

To make it easy for you we have created our Lien Calculator. Our lien calculator helps track your lien timeline and calculate the last day you are eligible to file a builders’ lien. Use the calculator by simply selecting the province where the work was performed and inputting your last day on site. Our calculator will generate the details and timeline for your lien. The calculator will determine how many days you have been off site and provide you with the exact date you must file a builder’s lien in order to preserve your lien rights.

If you are still within your lien period (deadline to file has not passed) you are eligible to file a lien. Lien filing is another tool in your collections toolkit. Not all situations will benefit from filing a lien. Feel free to contact one of our knowledgeable staff for a consultation if you are unsure of your lien deadline or to discuss your situation.