We regularly assist with:

• Unpaid contractor or subcontractor invoices on residential, commercial, and industrial projects.

• Tenant improvement work where the property owner disputes liability.

• Delay claims, including direct costs caused by project slowdowns.

• Disputes over holdback funds retained under the Construction Act.

• Challenging improper or exaggerated liens that tie up a property.

• Vacating or discharging liens that are frivolous, vexatious, or abusive (including cases under section 47 of the Act).

Examples of matters we handle include:

• Registering liens for unpaid roofing, electrical, or general contracting work.

• Defending property owners when contractors file inflated or fraudulent liens.

• Enforcing liens by commencing court actions and securing payment from trust funds or court-held security.

• Reducing or discharging liens where the amounts claimed exceed the underlying contract.

Under Part III of Ontario’s Construction Act, a construction lien is available to anyone who has supplied services or materials to the “improvement” of a property, including renovations, additions, capital repairs, demolitions, or installations.

A lien grants the claimant:

• A legal claim against the property (or the contract in the case of public lands);

• Priority over many other creditors; and

• Leverage to secure payment before other disputes are resolved.

• The lien amount is based on the value of services and materials provided, plus certain direct costs from delays, but excludes interest, overhead, or indirect costs.

Construction liens are subject to strict deadlines. Missing them usually means losing your lien rights entirely.

1. Preserve the Lien (60 days) - You must register the lien against title (or serve it on the government owner) within 60 days from the earlier of:     

• The date the contract is completed, abandoned, or terminated; or

• The date of publication of the certificate or declaration of substantial performance (if any).

• Subcontractors must also count from the last day they supplied materials or services.

2. Perfect the Lien (90 days) - Within 90 days of the last day to preserve, you must:

• Commence a court action in the Superior Court of Justice; and

• Register a Certificate of Action on title.

In total, you have 150 days from the triggering date to preserve and perfect your lien.

If you miss these deadlines, your lien expires. Your only remaining recourse is to sue for breach of contract, without the security a lien provides.

Once perfected, a lien provides ongoing security but will expire two years after the action is started unless the case is set down for trial or ordered for trial by the court (Construction Act, s.37). If a lien expires, the court will dismiss the action, vacate the lien, and return any security paid into court.

While liens are a legitimate payment protection tool, they are sometimes abused. Ontario courts allow owners to:

• Vacate a lien by paying the claimed amount (plus 25% for costs) into court, so the lien no longer burdens the title.

• Discharge a lien entirely under section 47 of the Construction Act, where it is frivolous, vexatious, wilfully exaggerated, or an abuse of process.

• Recent cases show courts may reduce inflated liens or discharge them where the claimant’s conduct—such as misrepresentation, refusal to comply with court orders, or bad faith—abuses the process.

Although all lien actions must start in the Superior Court, amendments to the Construction Act (s.58) allow cases to be transferred to the Small Claims Court after pleadings are closed if:

• The total amount in dispute is $35,000 or less (the current Small Claims monetary jurisdiction); and

• A party brings a motion to transfer (or all parties consent).

Why transfer?

• Small Claims Court offers a simpler, faster, and less expensive process for hearings.

• The procedural rules are streamlined, making it more accessible for smaller disputes.

However, the process still requires you to:

• Register the lien,

• Start the action in Superior Court,

• Register a Certificate of Action, and

• Bring the transfer motion.