builders’ liens and oh&s: not to be forgotten presented by: collin k. hirschfeld to...
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Builders’ Liens and OH&S:NOT TO BE FORGOTTEN
Presented by: Collin K. Hirschfeld to Saskatchewan P3 Summit 2014
Date: September 9, 2014
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AGENDA
Overview of Builders’ Liens
Trust ProvisionsLien ProvisionsHoldback ProvisionsPractical Considerations
OH&S
Prime ContractorRequired WorksitePrime Contractor Obligations
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BUILDERS’ LIENS
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PRELIMINARY THOUGHTS
Pay attention to the definitions and concepts under the Act, like:
• Contract• Subcontract• Substantial performance (section 3)• Completion (section 4) (NEW)• ALL APPLY TO A P3 SITUATION
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TRUST PROVISIONS
Three types
Owner, Contractor, Subcontractor
If have non-monetary consideration, the value can be part of the trust
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TRUST PROVISIONS (CONT’D)
Directors and others in control can be liable for breach of trust
Have to assent or acquiesce in conduct knew or ought to have known was breach
Two years from completion to sue
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LIEN PROVISIONS
Arises as soon as work or materials are provided to a project
Provided doesn’t necessarily mean actually on site
Is a lien on the real property and the materials for as much as remains unpaid
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LIEN PROVISIONS (CONT’D)
Can have a general lien on more than one parcel
If you can’t identify which piece of land was improved
Cannot register against Crown landbut serve Crown
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LIEN PROVISIONS (CONT’D)
Lien is a charge againstHoldbackAny additional amounts owing
Needs to be registered within 40 days of:
Substantial completionAbandonmentCompletion
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LIEN PROVISIONS (CONT’D)
Two ways to claim lien
Claim of LienAttaches to land and holdback
Can discharge in whole or in part
BUT cannot be revived
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LIEN PROVISIONS (CONT’D)
Written Notice of Lien
Binds other 90% Effective in stopping project
Cuts both ways though Can still pay other funds if holdback lien amount Can withdraw and reserve
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HOLDBACK PROVISIONS
Each payer in the pyramid has to maintain
Applies regardless of payment terms under the contract
Mortgagee may maintain
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HOLDBACK PROVISIONS (CONT’D)
Is inviolable
Can’t be used to complete project
But not forever – 40 day period
Can be sued if fail to release
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HOLDBACK PROVISIONS (CONT’D)
Owner has to maintain a holdback trust account
Crown does not have to maintain a holdback trust account
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PRACTICAL CONSIDERATIONS
Liens can be lapsed under Land Titles Act
Section 47 direct payment
Section 56 application (no notice)
Section 57 application (holdback)
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PRACTICAL CONSIDERATIONS
Can request information from owner or mortgagee
Can be questioned on lien claim
Cannot contract out of Act
Can argue substantially complied with form
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PRACTICAL CONSIDERATIONS
Pay attention to if there is a certificate of substantial completion
Can request certification of completion of subcontract or contract
Important because it can affect when holdback is released
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PRACTICAL CONSIDERATIONS
Is allowance for liens filed outside 40 days
But affects what you attach
Owner could payout funds and you are left with nothing
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PRACTICAL CONSIDERATIONS
Are two holdback funds
Pre-substantial completionPost-substantial completion
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PRACTICAL CONSIDERATIONS
Holdback on large contracts
Has to be over 1 year to complete
Value has to be over $25M
Allows for yearly release of holdback
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OH &S
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PRIME CONTRACTOR
Effective January 1, 2015
Applies to construction, forestry, and oil and gas industries
Applies to a required worksite
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REQUIRED WORKSITE
Has 10 or more self-employed persons or workers under the direction of two or more employers
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WHO IS THE PRIME CONTRACTOR
Party who enters agreement with owner to be the prime contractor
OR
If no agreement, owner of the worksite is the prime contractor
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OBLIGATIONS OF PRIME CONTRACTOR
Gather all policies, procedures and safe work practices of all employers and self-employed parties on site
Coordinate activities at the work site affect health and safety
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OBLIGATIONS OF PRIME CONTRACTOR (CONT’D)
Ensure all parties on site have adequate and appropriate policies etc. re safety and ensure compliance with them
Prepare written plan prior to work that outlines above and lists supervisors of parties on site
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OBLIGATIONS OF PRIME CONTRACTOR (CONT’D)
Identify hazards and inform
Ensure parties on site eliminate hazards identified before work starts OR identified after work starts.
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Thank You!