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The Construction Lien Act has very rigid timelines
within which a contractor, subcontractor or supplier can register a
construction lien for outstanding payments for work performed or
materials supplied on a construction project. It may be that the
contractor, subcontractor or supplier does not realize that there
will be problems getting paid until after the time to register a
construction lien has expired. If you have missed the time in which
you can file a construction lien, you can still sue the party with
whom you have a contract for the outstanding payment. However, to
do so you must sue within two years from when the money was due and
owing under the outstanding invoices.
If the unpaid invoices are for $25,000.00 or less, the action
can be commenced in Small Claims Court. Small Claims Court is
designed to be user friendly for unrepresented litigants. If the
outstanding invoices are for more than $25,000.00, it is best to
retain legal counsel to assist in commencing a lawsuit in the
Superior Court of Justice as it is not as easy to navigate without
the assistance of a lawyer.
If your contract was with a company, you may also be able to sue
the company's directors, officers or individuals who were in
control of the company for any breaches of the trust obligations
that they have under the construction lien regime.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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