Report on Builders Liens and Arbitration

BCLI Report No. 22

20 Pages Posted: 22 Jun 2009

Date Written: October 1, 2002

Abstract

British Columbia's Builders Lien Act protects participants in a construction project (such as subcontractors, workers, and suppliers of material) by providing for a special claim on property for the payment or performance of some debt, obligation, or duty, called a lien. A lien is claimed against the construction project itself, and if successful will allow a claimant to access the "holdback," which is a percentage of a contract price retained by a contractor or lender until the project is complete and all bills are paid. The assertion of a lien claim generally means the claimant alleges that money owed has not been paid. A lien claimant must commence an action in court to enforce the lien. This procedure is in contrast to the well-established practice in the construction industry not to use the courts to resolve construction disputes. These opposing approaches have resulted in concerns and questions surrounding the interface between builders' lien legislation and arbitration procedures, which this report seeks to address.

Keywords: builders liens, legislation, Builders Lien Act, alternative dispute resolution (ADR), arbitration, Commercial Arbitration Act, housing, tenancy, construction law, business, construction, Uniform Law Conference of Canada

Suggested Citation

Law Institute, British Columbia, Report on Builders Liens and Arbitration (October 1, 2002). BCLI Report No. 22, Available at SSRN: https://ssrn.com/abstract=1422669

British Columbia Law Institute (Contact Author)

British Columbia Law Institute (BCLI) ( email )

1822 East Mall
Vancouver, British Columbia V6T 1Y1
Canada

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