News Articles

Builder’s Liens

Over the past few years, Central Alberta and Red Deer have seen a significant increase in the area of construction in both the residential and commercial settings.  Inevitably for lawyers, this increased level of construction is also accompanied by more frequent calls from persons who have not been paid for work done, or materials supplied to a construction project.  The most commonly asked question by these callers is “what can I do to get paid?”.

On one hand, the person who has not been paid can sue for breach of contract against the party with whom they have a contract.  Another avenue that the person may be able to pursue is to register a builder’s lien claim under the Builder’s Lien Act against the land for which they provided the work and materials. The benefit of registering the lien against the property is that the owner cannot pay out any other monies to any contractors until that lien is dealt with, and there is some form of security for the person owed money.

Under the Builder’s Lien Act, a person who does work on, or who provides materials to be used in, an improvement to land has a builders’ lien claim against the land for the amount of their work done or materials provided.  An improvement is defined in the Builders’ Lien Act as anything constructed, erected, built, placed, dug, or drilled on or in the land.  Therefore, where a person has done work on or provided materials to an improvement on land they will have a builders’ lien claim. 

This builders’ lien arises as soon as the person first starts their work on the land, or first delivers the material to the land for use in the construction project.  However, it is important to note that the builders’ lien against the land will not last forever.  The Builder’s Lien Act provides a timeline that must be met in order to preserve the lien.  The builders’ lien will cease to exist unless the person claiming it registers a Statement of Lien at the appropriate Land Titles or Land Registry Office within a specified time period. 

In general, the specified time period to register a Statement of Lien to preserve a builders’ lien claim is up to the end of 45 days from the date that the contract was completed, or 45 days from the date that work was last done or materials were last furnished to the land.  An exception to this 45 day specified time line is where the work is done on or materials are furnished for an improvements made to oil or gas wells or oil or gas well sites.  A person claiming a builders’ lien against an oil or gas well or well site has 90 days from the date they last did the work or provided the materials in order to register the Statement of Lien. 

A form of the Statement of Lien that one needs to register to preserve a builders’ lien claim can be found at any lawyer’s office or alternatively at any Land Titles office.  This article is only a brief overview of the rights of a lien holder under the Builder’s Lien Act and further inquires should be made prior to making a decision on whether to register a builders’ lien.  

By Glyn Walters
April 16, 2003