Introducing the Construction Remedies Act
Kenneth McCullogh, QC and Conor O’Neil, P.Eng.
On December 18, 2020, the Legislative Assembly of New Brunswick passed the Construction Remedies Act. After nearly a year the new legislation will come into force on Monday, November 1, 2021. Our update outlining some of the major differences between the Construction Remedies Act and its predecessor, the Mechanics’ Lien Act is available online here.
Transition provisions
The new act will apply to all contracts entered into on or after November 1, 2021. Despite the repeal of the Mechanics’ Lien Act, that legislation will continue to apply to any contracts entered into before November 1, 2021. In other words, any contracts currently being performed will not be subject to a change in law.
Almost all of the sections of the Construction Remedies Act will come into force on November 1, with some exceptions. Importantly, the provisions which require an owner of a construction project to create a holdback trust account, which could prove to be administratively burdensome to many owners, will not come into force on November 1. It is expected that there will be changes made to the regulations and that these sections will come into force on a later date.
The regulations, which are now available online here, prescribe new forms to be used for filings of liens and projects where mandatory surety bonding is required on Crown or local government projects.
What’s next
It could still be several months before the effects of the new legislation are known in practice. Given that the transitional provisions flow with the dates of contracts parties managing several projects should pay careful attention to the dates of those contracts to determine which legislation applies.
This update is intended for general information only. If you have questions about how the information above may affect you, please contact any member of our construction group.
Click here to subscribe to Stewart McKelvey Thought Leadership.
Archive
Kevin Landry and Jamie Watson New Brunswick’s proposed cannabis regulatory scheme has been introduced. An initial press release was followed by the introduction of amendments to the New Brunswick Liquor Control Act, and the Motor…
Read MorePeter McLellan, QC & Level Chan In September 2017, Nova Scotia’s Department of Finance and Treasury Board announced that stakeholder input is being sought regarding potential permanent changes to the funding framework for defined benefit…
Read MoreAndrew Burke & Divya Subramanian Securities markets around the world are grappling with new concerns: As fintechs make cryptocurrency offerings such as Initial Coin Offerings (ICOs), Initial Token Offerings (ITOs) or other digital token offerings,…
Read MoreStewart McKelvey is pleased to announce the creation of Discovery: Atlantic Education and the Law, a publication specifically designed for universities and colleges. We know it is not always easy for institutions in Atlantic Canada…
Read MoreRick Dunlop and Kevin Landry New Brunswick’s Final Report of the Select Committee on Cannabis was released September 1, 2017. The Committee was appointed by the Legislature of New Brunswick and was mandated to conduct…
Read MoreJennifer Taylor A child and her adoptive parents “found themselves caught up in a judge-made vortex of uncertainty and delay” when a judge made a “self-directed constitutional reference” instead of issuing an adoption order, prolonging…
Read MoreJennifer Taylor Introduction The recent Nova Scotia Supreme Court decision in Dyack v Lincoln is a nice case study on how to work through a limitations issue. It arrives almost two years after the “new”…
Read MoreBrian G. Johnston, QC While the concept of good faith is not new to employment law, its limits and implications remain uncertain. In a recent decision, Avalon Ford v Evans 2017 NLCA 9, the Newfoundland…
Read MoreLevel Chan and Dante Manna On August 9, 2017, the Nova Scotia Superintendent of Pensions announced temporary solvency relief for defined benefit pension plans available effective August 8, 2017. The changes allow pension plan sponsors…
Read MoreKevin Landry Edmonton wants “Cannabis Lounges”, Nova Scotia Landlords don’t want tenants to smoke marijuana in their rental homes, and Calgary City Council contemplates a private recreational cannabis system. The old adage of “Location. Location.…
Read More