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
By Jennifer Taylor Introduction There is now a Nova Scotia decision on the interplay between the provincial Builders’ Lien Act and the federal Bankruptcy and Insolvency Act (“BIA”) in the interesting context of trusts. In Re Kel-Greg Homes Inc, Justice Rosinski…
Read MoreThe New Brunswick government is seeking feedback from stakeholders on proposed changes to the Employment Standards Act (“Act”). The proposed changes relate to: – the statutory minimum wage; – employment protections for young workers; and – coverage…
Read MoreOCTOBER 19, 2015 – FEDERAL ELECTION A Federal election has been called for Monday, October 19, 2015. Polls are open in Atlantic Canada from 8:30 a.m. to 8:30 p.m. Advance polls are open from…
Read MoreAs of August 1, 2015, section 4 of the Nova Scotia Automobile Tort Recovery Limitations Regulations was repealed. This section previously set the discount rate for future losses in automobile tort claims at 3.5%. The repeal…
Read MoreOn September 9, 2015, the Nova Scotia Department of Finance and Treasury Board opened a consultation on draft Regulations for Pooled Registered Pension Plans (PRPPs). The draft Regulations and an FAQ are posted online. PRPPs are…
Read MoreBy Jennifer Taylor – Research Lawyer September used to mean one thing: back to school. This year, Nova Scotia lawyers get a fresh learning opportunity of a different sort. It comes in the form of the new Limitation…
Read MoreTHE EDITORS’ CORNER Michelle Black and Sean Kelly Aaah, summer – that long anticipated stretch of lazy, lingering days, free of responsibility and rife with possibility. It’s a time to hunt for insects, master handstands, practice swimming…
Read MoreThe New Public Contracting World As part of an ongoing initiative aimed at ensuring Canada only does business with ethical suppliers, Public Works and Government Services Canada (“PWGSC”) has introduced changes to its Integrity Regime…
Read MoreIn an important case for insurance practice in Nova Scotia, the Court of Appeal has confirmed that the value of future CPP disability benefits is deductible under the SEF 44 family protection endorsement. Justice Scanlan wrote the…
Read MoreIn order to streamline the continuous disclosure obligations of venture issuers, the Canadian Securities Administrators (“CSA”) are implementing amendments to the national instruments and companion policies listed below, that will come into force across Canada…
Read More