A builder’s lien (sometimes called a construction lien) is a powerful legal tool that helps contractors, subcontractors, and suppliers get paid for work or materials provided on a construction project. In simple terms, it allows an unpaid party to register a claim against the property they worked on to encourage payment on unpaid amounts.
When properly filed, a builder’s lien attaches to the title of the property. This can prevent the owner from selling or refinancing until the payment dispute is resolved which often creates strong leverage for contractors seeking outstanding invoices.
Builder’s liens exist to protect those who improve real property. Construction projects typically involve multiple parties and large sums of money, and liens help ensure that workers and suppliers aren’t left unpaid after contributing time, labour, or materials.
However, lien rights are strict, time-sensitive and subject to both legislative and common law rules. Each province has its own deadlines and procedural requirements. Missing a filing window or making an error in the registration can invalidate the lien entirely, so acting quickly matters.
If you’re owed money on a construction project, a builder’s lien may be one of your most effective remedies but it’s only one part of a broader collection strategy that can include demand letters, negotiations, or legal proceedings.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Construction lien laws vary by province and depend on individual circumstances. For advice specific to your situation, you should consult a qualified lawyer.