Changes to Municipal Construction Liens under the October 1, 2019 Construction Act

  • 19 octobre 2019
  • Samantha Ambrozy, solicitor at Toronto Transit Commission

Significant changes to the <em>Construction Act </em> ("the Act") came into force in Ontario on October 1, 2019. While prompt payment and adjudication have been receiving most of the attention, a significant change to how construction liens are preserved in respect of municipal premises should not be overlooked.

On October 1, 2019 s.16 and s. 34 of the Act were amended such that liens no longer attach to a municipality’s interest in a premises. Liens in respect of a municipality’s interest in a premises are now preserved by giving or delivering a copy of the claim for lien to the municipality, similar to how liens are preserved in respect of Crown premises or railway right-of-ways.

The October 1, 2019 municipal lien amendments have two key features.