OSPE - The Voice - June 2020 - 36
ENGINEERING ACADEMY
* Construction Lien under The Construction Act - allows
individuals or companies who provide labour or materials
on a parcel of land to register a lien on the title of the land for
non-payment. For engineering services to qualify for a lien, the
services must have enhanced the value of the land. For example,
design plans and specifications for a new home are considered
an enhancement. The lien forces the landowner to deal with the
debt. If you were contracted by a contractor and not the owner,
a lien may compel the owner to pressure the contractor to pay
the account. The time limits to register a lien must be carefully
considered. In general, a lien must be registered within 60 days of
a trigger date, which is based on various considerations defined
in the Construction Act. For matters where the old Construction
Lien Act applies, the lien period is 45 days. If the time limit
expires, the lien right expires indefinitely. If the lien is not paid,
then it must be perfected by issuing a legal action in the Superior
Court of Justice and the claim will have to be proven.
* Adjudication under The Construction Act - in the Spring
2020 issue of The Voice magazine, we mentioned Prompt
Payment and Adjudication as new regimes in the Construction
36
THE VOICE Summer 2020
Act. If the engineering services fall under the Construction Act,
the new Adjudication regime is a source of resolving unpaid
accounts. The mandatory process aims to provide a fast means to
secure an interim decision while the construction project is being
completed. The government has set up an organization to carry
out this program, known as the Ontario Dispute Adjudication
for Construction Contracts (the "ODACC"), which has already
implemented procedures and appointed adjudicators for the
program. The ODACC outlines the process on their website at
https://odacc.ca/en/adjudication-process/.
The information in this article is a brief overview of legal
options. If you have an unpaid account, it is critical that you
consult with a lawyer immediately to determine the best legal
strategy for your situation. The considerations for construction
liens and limitations are highly technical and require tailored legal
advice.
This article is provided for information purposes only and does
not constitute legal advice. For any questions or concerns, please
contact Corestone Law at info@corestone.ca.
https://www.odacc.ca/en/adjudication-process/
OSPE - The Voice - June 2020
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