According to a Feb. 13 government news release, “residents are invited to review the proposed Builders’ Lien Act regulations” and are to submit their comments by March 13.
The Act was enacted in 2023, replacing the Mechanics Lien Act.
Construction liens are charges contractors can slap on a property if they have not properly been paid for services or materials they have provided.
“The new legislation was put in place to address modern construction practices,” states the release. “It sets out the legal processes, systems, rights, and remedies for parties involved in construction disputes.”
It goes on to state that the government is “now working to identify and develop the regulations needed to bring the … Act into force.”
The regulations will “establish standard forms for workers and organizations that rely upon this legal system.”
The new legislation will also “set out the various financial limits and thresholds for various provisions of the Act.”
According to a government of Northwest Territories information document published just after the Act’s tabling in 2022, the new legislation more adequately meets “the requirements of contractors, employees and those who work on construction projects.”
It goes on to state that the new Act contains changes that include: extending timelines for the filing and perfecting of claims; creating “trust provisions” requiring “owners and contractors to hold any money received in trust for employees and subcontractors;” and providing “the right to information.”
It further details that the new Act will “address modern construction practices,” consider “evolving best practices” and will use updated terminology and “plain language where possible.”
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