Property owners are the ones on the “receiving end” of construction liens, which often amounts to a significant burden. The sale or refinancing of a property can be hindered by the presence of a construction dispute or lien, creating the potential for knock-on damages as a result of delays. A small disagreement with a contractor or supplier can thus grow into a significant headache.
In addition to the risk of construction liens, owners can also be subject to the same holdback rules that apply to lenders, as well as the rules for the prompt payment of invoices. Even in the absence of disputes over the work, ensuring that money is held back or paid out at the proper time, in accordance with the rules, can prove challenging.
Any owner committing resources to a construction project can benefit from timely and accurate legal advice. Our experienced team is available to assist owners in navigating the Construction Act, to avoid pitfalls before they become problems.