More Protection for Builders, Suppliers

Nova Scotians who work in the building trades or supply materials to the construction industry will benefit from proposed changes to the Mechanics' Liens Act introduced today, April 21, by Justice Minister Michael Baker.

"These changes will help ensure that people get paid for their work. It means more security for them," said Mr. Baker. "Updating the act responds directly to recommendations made last year by the Law Reform Commission of Nova Scotia."

Construction projects can involve many different contracts. Therefore, one party's inability or refusal to pay, especially if it's at the top of the construction pyramid, can harm various contractors and suppliers on the project.

The legislation would give builders and suppliers extra time to register a lien -- 60 days as opposed to 45. It would also create a legal trust so funds are set aside by the property owner to pay all the expenses for services or goods. Similar provisions exist in most other provinces.

"The trust provisions, combined with better access to information about payments from the owners, will greatly assist the industry in ensuring that people receive the amounts they're owed," added Carol MacCulloch, president of the Construction Association of Nova Scotia.

"These amendments are possible because of extensive consultation with the building industry," said Mr. Baker. "I want to thank the Law Reform Commission for its discussion paper and final report. Many Nova Scotians will benefit from the improvements we're making to the legislation."

Under the proposed amendments, there are also new provisions for those using arbitration to resolve disputes. The name of the act would also change to the Builders' Liens Act to more accurately reflect the nature of the industry.