Three years into the Interim Adjudication process under Part II.1 of the Construction Act, it is apparent that what was promised as a quick and dirty approach to dispute resolution is turning into a fly-by-night process that creates more problems than solutions. In this article, the author shares his thoughts on some of these problems.
While litigation in construction lien issues takes place within the formal, court system, parties have the ability to take such disputes outside of their system and into the hands of their community leaders.
Settlements are always preferred to litigation, but it’s important to note the following procedural steps when finalizing a settlement in construction lien litigation.
Congratulations! You have successfully preserved a construction lien. Now what? Section 36 of the Construction Act now requires that this construction lien be “perfected” by way of issuing a Statement of Claim and commencing an action in the proper jurisdiction to enforce the lien.
There’s a saying in the construction sphere – measure twice, cut once. This wisdom especially applies to construction liens. Once a lien is preserved (by registration or service), it can no longer be amended to address any errors in the lien. The implications? Devastating.
In order to secure payment, claimants must first “preserve” their construction lien by way of a Form 12. In addition to the other content requirements listed in Section 34(5) of the Construction Act, a party claiming a construction lien must sign, or verify, the lien through Form 12. But who can sign this document?
