By Shelly Peng
If you are a material supplier in Ontario’s construction industry, you might already know that your lien rights are pretty decent even if your delivery truck does not pull right up to the job site. Under Ontario’s Construction Act, you can still claim a lien if the materials were intended for and actually used in the improvement, provided certain legal requirements are met.[1] But here’s the catch: not every province is as generous.
That got us thinking: what happens if you are supplying materials across provincial borders? Can you expect similar protections in Alberta or British Columbia? What if your shipment goes to a contractor’s warehouse instead of directly to a site? And how strictly do other provinces define things like “delivery” or “materials”?
To help untangle this, we looked at how lien rights work for material suppliers in every common law jurisdiction in Canada. We focused on three practical questions:
- What counts as “materials”?
- Where do the materials need to go to qualify?
- When do lien rights kick in and when do they expire?
Let’s start with Alberta, where the rules offer some flexibility—but with important limits.
Alberta
Statute: Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4.
The Alberta Act does not expressly define “materials,” but lien rights are available to those who furnish materials to be used in or in respect of an improvement.
Creation and Location of Lien
A material supplier’s lien arises under s. 6(1)(b) where a person furnishes material “to be used in or in respect of an improvement” for an owner, contractor, or subcontractor.[2]
The meaning of “furnishing” is informed by s. 9. Under s. 9(1), material is considered furnished when it is delivered:
- on the land where it is to be used, or
- in a place in the immediate vicinity of that land, as designated by the owner, owner’s agent, contractor, or subcontractor.[3]
Although s. 9(1) requires delivery to the site or adjacent designated land, s. 9(2) provides flexibility: lien rights may still arise even if the material was not delivered in strict compliance with s. 9(1), so long as the material is incorporated into the improvement.[4]
Under s. 10, the lien is deemed to arise at the time the first material is furnished to the improvement.[5]
Expiry of Lien
Under s. 41(1), a lien must be registered:
- within 60 days of the last date materials were furnished or the contract to furnish materials was abandoned, or
- within 90 days from the day that the last of the materials is furnished or the contract to furnish the materials is abandoned in the case of improvements related to oil/gas wells or concrete.[6]
The deadline is not extended merely because initially defective or incomplete work or materials are later corrected or completed.[7]
Once registered, a lien expires 180 days from the date of registration unless:
- an action is commenced to enforce or realize on the lien, and
- a certificate of lis pendens is registered in the appropriate land titles office.[8]
If these steps are not taken, the lien ceases to exist.[9]
If a certificate of lis pendens is registered, the lien continues until the proceedings are concluded or the certificate is discharged, whichever is later.[10] However, if no trial is held within two years, an interested party may apply to have the lien discharged.[11]
British Columbia
Statute: Builders Lien Act, SBC 1997, c 45.
Definitions
The British Columbia Act defines “material” as movable property that is delivered to the land on which the improvement is located and
- intended to become part of the improvement (either directly or in a transformed state), or
- consumed or used in the making of the improvement, including rented equipment without an operator.[12]
A “material supplier” is defined as a contractor or subcontractor who supplies only material in relation to an improvement.[13]
Entitlement to Lien
Under s. 2(1), a person who supplies material in relation to an improvement has a lien for the unpaid price of the material on the following:
- the owner’s interest in the improvement,
- the improvement itself,
- the land on or under which the improvement is located, and
- the material delivered to or placed on the land.[14]
However, s. 2(2) expressly excludes lien rights for those who supply material to another material supplier, engineer, or architect.[15]
Location of Delivery
To support lien rights in British Columbia, the statute appears to require that the material be delivered to the land where the improvement is located.[16]
Section 29 reinforces the importance of delivery to or reaching the site by providing that a signed acknowledgement from the recipient, stating that the materials were received for use at a specified address, serves as proof of delivery to that land unless there is evidence to the contrary.[17]
Creation and Timing of Lien
A lien takes effect from the time the first material is supplied for which the lien is claimed. It has priority over all judgments, executions, attachments and receiving orders recovered arising after that date.[18]
The time for filing a claim depends on whether a certificate of completion has been issued:
- If so, the claim must be filed within 45 days from the date of the certificate.[19]
- If not, the deadline is 45 days from either:
- the completion, abandonment, or termination of the head contract (if one exists), or
- the completion or abandonment of the improvement (if there is no head contractor).[20]
If a claim of lien is not filed in accordance with the above timelines, the lien is extinguished by operation of law.[21]
Manitoba
Statute: The Builders’ Liens Act, RSM 1987, c B91.
Definition of “Materials”
Under the Manitoba Act, “materials” is broadly defined to include “every kind of movable property.”[22]
Location of Delivery
Section 2(3) provides that materials are deemed to have been supplied for lien purposes if they are:
- delivered to the land where the contract or subcontract is to be performed;
- delivered to other land in the immediate vicinity that has been designated by the owner or their agent as the delivery location (note: this does not make the designated land itself subject to a lien); or
- made to contract specifications and delivered to the contractor or subcontractor for the purpose of being used in the performance of the contract or subcontract.[23]
Section 17 provides that even if materials were not delivered in accordance with s. 2(3), lien rights still arise if the materials are actually incorporated into or used in the construction or improvement of the land.[24]
Creation of Lien
A lien arises when a person supplies materials to be used in the performance of a contract or subcontract.[25] The lien attaches to the improvement and the land once the materials are either properly delivered under s. 2(3) or incorporated under s. 17.[26]
Section 35(3) confirms that a lien attaches to materials delivered for use under a contract and continues until the materials are incorporated into the structure or land.[27]
Registration and Expiry of Lien
Under s. 43(3), a material supplier’s claim for lien must be registered:
- before or during the supply of the materials, or
- within 40 days of the earlier of substantial performance or abandonment of the contract, or the date of last supply of materials, whichever occurs first.[28]
If materials are supplied after a certificate of substantial performance is issued (i.e., to complete the remaining work), the lien must be registered:
- before or during the continued supply of materials, or
- within 40 days after the last supply of materials.[29]
If registered, it expires two years after registration unless a lien action is commenced and a certificate of lis pendens is registered.[30]
A lien ceases to exist if it is not registered within the time allowed under s. 43 or 44.[31]
New Brunswick
Statute: Construction Remedies Act, SNB 2020, c 29.
Definition of “Materials”
Under s. 1, “materials” includes movable property that:
- becomes, or is intended to become, part of an improvement, or that is used directly in the making of an improvement, or that is used to facilitate directly the making of an improvement, or
- is equipment rented without an operator for use in the making of an improvement.[32]
Entitlement to Lien
Under s. 20(1), a person who supplies materials for an improvement is entitled to a lien for the unpaid contract price or portion thereof.[33] The lien attaches to both the land on which the improvement is made, and the improvement itself.[34]
Location of Delivery
Materials are deemed to be supplied when delivered:
- to the land where they are to be used, or
- to another location that is in the immediate vicinity of the land, and designated by the owner (or their agent), contractor, or subcontractor.[35]
Section 20(3) provides that even if delivery does not strictly comply with s. 20(2), lien rights still attach if the materials are ultimately incorporated into the improvement.[36]
Creation and Expiry of Lien
A material supplier’s lien arises when the person first supplies materials for the improvement.[37]
A material supplier must register a claim for lien within 60 days after the earliest of the following events:
- a certificate or declaration of substantial performance of the contract;
- completion, abandonment, or termination of the contract;
- the last supply of materials;
- a certificate or declaration of completion of the subcontractor’s own subcontract;
- a certificate or declaration of completion of a related subcontract.[38]
If materials are supplied to complete a contract that has already been declared substantially performed, the 60-day registration period begins after the earliest of:
- completion, abandonment, or termination of the contract;
- the last supply of materials;
- a certificate or declaration of completion of the subcontractor’s own subcontract; or
- a certificate or declaration of completion of a related subcontract.[39]
Newfoundland and Labrador
Statute: Mechanics’ Lien Act, RSNL 1990, c M-3.
Definition of “Materials”
Under the Act, “materials” is broadly defined to include “every kind of movable property.”[40]
Entitlement to Lien
Under s. 6(1), a person who places or provides materials to be used in the improvement of land, buildings, structures, or works is entitled to a lien for the price of the materials, unless they have signed an express agreement to the contrary.[41]
The lien attaches to the owner’s estate or interest in:
- the land, building, structure or works and appurtenances,
- the land occupied or enjoyed, or
- the land upon or in respect of which the work is done, or upon which the materials are placed or provided to be used.[42]
The lien is limited in amount to the unpaid price of the materials and to the amount the owner owes, except as otherwise provided in the Act.[43]
Location of Delivery
Section 6(2) provides that materials are deemed sufficiently delivered if they are:
- placed on the land where they are to be used, or
- placed on a place in the immediate vicinity of the land designated by the owner or the owner’s agent (note: delivery to the designated land does not create a lien against that land itself).[44]
Section 6(3) confirms that lien rights will still arise if the materials are incorporated into the improvement, even if delivery was not strictly in accordance with the location requirements.[45]
Creation and Expiry of Lien
A lien arises when materials are provided or placed for the improvement.[46]
Under s. 24(1), a registered lien expires 90 days after the materials were placed or provided, unless an action is commenced to enforce the claim, and a certificate of action is registered under s. 23.[47]
A certificate of action may be vacated and all liens discharged if no trial date is set within one year of registration.[48]
A lien that is not registered within the prescribed time under s. 22 also ceases to exist.[49]
Northwest Territories
Statute: Mechanics Lien Act, RSNWT 1988, c M-7.
Entitlement to Lien
A person who provides materials to be used in the construction, alteration, or repair of a building or erection is entitled to a lien on the building or erection, and on the land occupied or enjoyed in connection with it, for the price of the materials supplied, not exceeding the amount justly due.[50]
The lien arises when materials are supplied for use in the improvement, and this right exists unless the supplier has signed an express agreement waiving the lien.[51]
Expiry of Lien
A registered lien ceases to exist unless:
- within 45 days after the last possible day for registration (under s. 21 or 22), or
- within 90 days after the expiry of a stated period of credit (if specified in the claim),
both of the following occur:
- proceedings are commenced to enforce the lien, and
- a certificate of proceedings is registered in the same land titles office where the lien is registered.[52]
If neither step is taken within the applicable period, the lien automatically expires.[53]
An unregistered lien expires if it is not registered within the time limits set out in sections 21 or 22 of the Mechanics’ Lien Act—generally 45 days after the last supply of materials or completion of work.[54] However, the lien may survive beyond that period if, before the deadline, an action is commenced to enforce the lien and a certificate of proceedings is registered in the appropriate land titles office.[55]
Nova Scotia
Statute: Builders’ Lien Act, RSNS 1989, c 277.
Definition of “Materials”
Under the Act, “material” or “materials” is broadly defined to include “every kind of movable property.”[56]
Entitlement to Lien
Under s. 6(1), unless a person has signed an express agreement to the contrary (and subject to s. 4), any person who places or furnishes any material to be used in the construction, alteration, or repair of various improvements—such as a building, land, wharf, sewer, or other structures—for an owner, contractor, or subcontractor shall, by virtue thereof, have a lien for the price of such materials.[57] This lien attaches to:
- the improvement and its appurtenances,
- the land occupied thereby or enjoyed therewith, or
- the land upon or in respect of which the materials are placed or furnished to be used.[58]
The lien is limited in amount to the sum justly due to the person entitled to the lien and to the amount justly owing by the owner, subject to exceptions set out in the Act.[59]
Creation of Lien
A material supplier’s lien arises automatically upon the placing or furnishing of materials for the improvement, provided the work is done for an owner, contractor, or subcontractor and no agreement waives the lien right.[60]
Expiry of Lien
A lien that is not registered within the time allowed by the Act ceases to exist once that period expires.[61]
A registered lien will also cease to exist unless, within 105 days after the completion of the work or service, or the furnishing or placing of materials—or, if a period of credit is specified, within 105 days after that credit period expires—or, in cases falling under s. 24(5), within 30 days from the date of lien registration, an action is commenced to enforce the lien and a certificate of action (Form E) is registered in the same registry of deeds where the lien claim was filed.[62]
Nunavut
Statute: Mechanics Lien Act, RSNWT (NU) 1988, c M-7.
Under s. 3 of the Act, any person who furnishes materials for use in the construction, alteration, or repair of a building or erection is entitled to a lien on the building, erection, or mine, as well as on the lands occupied or enjoyed in connection with them, for the price of the materials, up to the amount justly owed to that person.[63] This lien right applies unless the person has signed an express agreement waiving it.[64]
An unregistered lien expires automatically if it is not registered within the timeframe specified in s. 21 or 22—typically 45 days after the last supply of materials, completion of work, or contract termination.[65] However, the lien remains valid past that deadline only if, before it expires, an action is commenced to enforce the lien and a certificate of proceedings is duly registered in the relevant land titles office.[66]
A registered lien ceases to exist unless certain steps are taken within the applicable time limits; specifically, the lien expires:
- 45 days after the last day it could have been registered under s. 21 or 22, or
- 90 days after the expiry of a stated period of credit (if one is set out in the claim of lien),
unless, in the meantime proceedings are commenced to enforce the lien, and a certificate of proceedings is duly registered in the land titles office where the lien was registered.[67]
Prince Edward Island
Statute: Mechanics’ Lien Act, RSPEI 1988, c M-4.
Entitlement to Lien
A person who furnishes any material to be used in an improvement for an owner, contractor, or subcontractor is entitled to a lien for the unpaid price of the materials.[68] The lien attaches to the estate or interest of the owner in the land where the improvement is being made, whether at the time the lien arises or at any point during its existence.[69]
Location of Delivery
Under s. 3(4), material is deemed furnished for lien purposes when it is:
- delivered to the land where it is to be used, or
- delivered in the immediate vicinity of that land, to a place designated by the owner, contractor, subcontractor, or their agent.[70]
Section 3(5) provides an exception: lien rights will still attach if the material is incorporated into the improvement, even if delivery was not in strict compliance with s. 3(4).[71]
Creation of Lien
A lien arises when the work is begun or the first material is furnished for the improvement.[72]
Expiry of Lien
A claim of lien for materials must be registered within 60 days from the date the last material was furnished.[73]
If no claim is registered within that time, the lien ceases to exist.[74]
A registered lien will also cease to exist 90 days after registration, unless an action is commenced within that time to enforce the lien.[75]
Saskatchewan
Statute: The Builders’ Lien Act, SS 1984-85-86, c B-7.1.
Definition of “Materials”
“Materials” means every kind of movable property that becomes or is intended to become, part of the improvement, or that is used to facilitate directly the making of the improvement.[76]
Location of Delivery
Under s. 2(2), materials are considered provided to an improvement if they are:
- placed on the land where the improvement is being made;
- placed on nearby land designated by the owner or their agent (though this does not make the designated land subject to a lien); or
- incorporated into or used in making or directly facilitating the improvement, even if they were not delivered directly to the site.[77]
Creation of Lien
A person’s lien arises and takes effect when they first provide their services or materials to the improvement.[78]
Expiry of Lien
If materials were supplied on or before the yearly anniversary of a contract (under s. 46), the lien expires 40 days after the notice of early holdback release.[79]
If supplied on or before substantial performance of the contract or subcontract, the lien expires 40 days after the earlier of:
- certificate of substantial performance of the contract or
- certificate of substantial performance of the subcontract (if applicable).[80]
For materials supplied after substantial performance of the contract or subcontract, the lien expires 40 days after the completion or abandonment of the contract, or after certain certificates are issued, depending on the specific timing.[81]
Yukon
Statute: Builders Lien Act, RSY 2002, c 18.
Yukon’s Builders Lien Act does not define where materials must be delivered to qualify for a lien.
Entitlement to Lien
Under s. 3, a person who furnishes materials for use in the construction, alteration, or repair of a building, erection, or mine is entitled to a lien for the price of the materials, unless they have signed an express written agreement to the contrary.[82] The lien attaches to the building, erection, or mine itself, as well as the lands occupied by or enjoyed in connection with it.[83] The amount of the lien is limited to the sum justly owed to the person entitled to the lien.[84]
Registration and Expiry of Lien
A claim of lien for materials may be registered before or during the progress of the work, or within 30 days after the completion of the work or the supplying or placing of the materials or machinery.[85] Failure to register within this period results in the loss of lien rights unless preserved by legal action as provided under the Act.[86]
A lien that has been properly registered will cease to exist 90 days after the work has been completed, the materials or machinery have been furnished, or the expiry of a credit period stated in the lien claim—whichever applies—unless, within that time, legal proceedings are commenced to enforce the lien and a certificate of those proceedings is registered in the land titles office.[87] The certificate may be issued by the court or judge where the proceedings were commenced.[88]
Conclusion
While provinces share common elements—such as requiring materials to be used or intended for an improvement—the rules on delivery location, lien creation, and expiry vary significantly. Many provinces—including Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, PEI, and Saskatchewan—take a similarly flexible approach as Ontario. They recognize lien rights even when materials are not delivered directly to the site, so long as they are delivered to an immediate vicinity or are ultimately incorporated into the improvement. In contrast, British Columbia seems to have taken a stricter approach: its legislation requires delivery to the site and includes provisions addressing proof of delivery to the land. Jurisdictions such as the Northwest Territories, Nova Scotia, Nunavut, and Yukon are more vague on the issue. Their statutes focus more on whether the materials are used in the improvement, without expressly addressing the location of delivery. Understanding these differences is essential for suppliers and construction professionals working across jurisdictions, especially when enforcing or preserving lien rights.
The foregoing is for informational purposes only and should in no way be relied upon as legal advice. If you have any further questions, or would like to schedule an appointment for legal advice tailored to your circumstances and business, please contact us at dan@fridmar.com.
[1] Construction Act, RSO 1990, c C.30, ss 1(2), 14(1).
[2] Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4, s 6(1)(b).
[3] Ibid, s 9(1).
[4] Ibid, s 9(2).
[5] Ibid, s 10.
[6] Ibid, s 41(1).
[7] Ibid, s 41(5).
[8] Ibid, s 43(1).
[9] Ibid, s 42.
[10] Ibid, s 46(1).
[11] Ibid, s 46(2).
[12] Builders Lien Act, SBC 1997, c 45, s 1(1).
[13] Ibid, s 1.1.
[14] Ibid, s 2(1).
[15] Ibid, s 2(2).
[16] Ibid, ss 1(1), 2(1)(g).
[17] Ibid, s 29.
[18] Ibid, s 21.
[19] Ibid, s 20(1).
[20] Ibid, s 20(2).
[21] Ibid, s 22.
[22] The Builders’ Liens Act, RSM 1987, c B91, s 1.
[23] Ibid, s 2(3).
[24] Ibid, s 17.
[25] Ibid, s 13.
[26] Ibid, ss 2(3), 17.
[27] Ibid, s 35(3).
[28] Ibid, s 43(3).
[29] Ibid, s 44(c).
[30] Ibid, s 49(2).
[31] Ibid, s 49(1).
[32] Construction Remedies Act, SNB 2020, c 29, s 1.
[33] Ibid, s 20(1).
[34] Ibid.
[35] Ibid, s 20(2).
[36] Ibid, s 20(3).
[37] Ibid, s 21.
[38] Ibid, s 60(1).
[39] Ibid, s 60(2).
[40] Mechanics’ Lien Act, RSNL 1990, c M-3, s 2(1)(g).
[41] Ibid, s 6(1).
[42] Ibid.
[43] Ibid.
[44] Ibid, 6(2).
[45] Ibid, 6(3).
[46] Ibid, s 6.
[47] Ibid, s 24(1).
[48] Ibid, s 23(4).
[49] Ibid, s 23(1).
[50] Mechanics Lien Act, RSNWT 1988, c M-7, s 3.
[51] Ibid.
[52] Ibid, s 24(1).
[53] Ibid.
[54] Ibid, s 23.
[55] Ibid.
[56] Builders’ Lien Act, RSNS 1989, c 277, s 2(c).
[57] Ibid, s 6(1).
[58] Ibid.
[59] Ibid.
[60] Ibid.
[61] Ibid, s 25.
[62] Ibid, s 26(1).
[63] Mechanics Lien Act, RSNWT (NU) 1988, c M-7, s 3.
[64] Ibid, s 3.
[65] Ibid, s 23.
[66] Ibid.
[67] Ibid, s 24(1).
[68] Mechanics’ Lien Act, RSPEI 1988, c M-4, s 2(b).
[69] Ibid, s 2.
[70] Ibid, s 3(4).
[71] Ibid, s 3(5).
[72] Ibid, s 8.
[73] Ibid, s 24(3).
[74] Ibid, s 25.
[75] Ibid, s 27.
[76] The Builders’ Lien Act, SS 1984-85-86, c B-7.1, s 2(1)(j).
[77] Ibid, s 2(2).
[78] Ibid, s 27.
[79] Ibid, s 49(3)(a).
[80] Ibid, s 49(3)(b).
[81] Ibid, ss 49(3)(c), (d), (e).
[82] Builders Lien Act, RSY 2002, c 18, s 3.
[83] Ibid.
[84] Ibid.
[85] Ibid, s 20.
[86] Ibid.
[87] Ibid, s 22.
[88] Ibid.
