The Department of Justice engaged external stakeholders regarding potential areas for change in replacing the Mechanics Lien Act.
The Mechanics Lien Act governs the payment relationship between owners, contractors, subcontractors, labourers, and providers of materials on a construction project.
The Act provides a dispute resolution mechanism whereby a participant in a construction project can file a claim against the property being improved, and enforce that claim in court in the event that they are not paid what is owed to them as wages or under an invoice.
Such legislation exists in every jurisdiction in Canada. In 2020 new legislation was adopted in Alberta and Ontario. A review conducted by the Department of Justice concluded that the NWT Mechanics Lien Act should be repealed and replaced with more modern legislation.
Engagement feedback from June 1, 2020 to September 30, 2020
Results under review
This engagement was completed September 30, 2020
Responses have been incorporated into the document "Highlights of What We Heard".
An engagement paper on A Proposed Builders Lien Act for the Northwest Territories was emailed to NWT stakeholders, municipalities, the legal community, the financial services industry, the construction industry, other GNWT departments, and posted on the Department’s webpage in June 2020.
The deadline for submission of comments was extended from August 4, 2020 to September 30, 2020 to allow sufficient time for more substantive feedback. Comments were accepted by email to email@example.com .