The Department of Digital Government and Service NL is launching a consultation on the Mechanics’ Lien Act (the Act), including a survey.

The Act allows for the registration of a claim for lien against real property for work done or to be done or for materials placed or provided or to be placed or provided on a particular property. A lien prioritizes payments to builders, contractors and construction firms that build or repair structures. Liens also extend to suppliers of materials and subcontractors and cover building repairs. A lien may also be registered by workers employed on a project. The Act has not undergone significant amendments since it was originally enacted in 1970. Other provinces and territories have amended their respective legislation in recent years.

The focus of the review of the Act will be on:

• Modifying the time limit for registering liens;
• Establishing a prompt payment framework to provide a remedy for late payments; and
• Establishing an alternative process for timely dispute resolution.

To help inform this review, the Department is consulting with key stakeholders that use the Registry of Mechanics’ Liens. In addition to the www.engagenl.ca questionnaire, written submissions will be accepted by email at LiensConsult@gov.nl.ca or by mail at:

Department of Digital Government and Service NL
West Block, 2nd Floor, Confederation Building
P.O. Box 8700 St. John’s, NL A1B 4J6

The Department welcomes your participation in this review and that of your members. The consultation will be open through May 31, 2024.
Sincerely,

Posted: May 6, 2024