Construction Liens – FAQs

Construction Lien in Ontario requests payment for goods or services used in a civil construction project. The law governing building warranties in Ontario is the Ontario Construction Act.

According to legislation, the civil construction project contractor must first pay all those who provided the project’s services and materials. If the contractor fails to pay its subcontractors, they have a legal right to sue the contractor for breach of trust.

In general, all construction contracts must contain the minimum necessary for all parties to obtain their rights in


  • Construction or repair agreement date
  • Personal information of all parties involved, such as name is the address;
  • Project specification including detailed information on how work should be performed;
  • Responsibilities of all parties involved, such as payment information, project management, and delivery schedule;
  • Definition of what can be understood as “substantial completion”;
  • Procedures for changing project requirements such as the use of “change orders” that must be signed by all parties involved;
  • Definitions of job standards to be performed;
  • Warranty and guarantees

Therefore, you can include other information that you believe is essential to your construction project.

It is quite common for construction projects to be delayed. The reasons that can lead to this delay may be the unavailability of materials, labor disputes, climate change that makes the work impossible, or even unavailability of municipal inspections delay obtaining licenses.

Because these types of delays are entirely predictable, it is ideal that the contract signed by the parties provides for what measures can be taken in such cases. However, some types of delays may be inexcusable and may result in a breach of the contract by one of the parties.

In cases of need to terminate a contract, the first step is to verify that the termination is consistent as the contract signed by all parties is to send a written notification to the contractor’s address, preferably with some physical record, such for example via mail.