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
The integrity of the jury system has become a pressing topic for our courts of late, with articles about jury duty frequently appearing front and centre in the press. The recent message from the Nova…
Read MoreIN THIS ISSUE: Cloud computing: House to navigate risky skies by Daniela Bassan and Michelle Chai Growing a startup by Clarence Bennett, Twila Reid and Nicholas Russon Knowing the lay of the land – Aboriginal rights and land claims in Labrador by Colm St. Roch Seviour and Steve Scruton Download…
Read MoreDOES IT APPLY TO YOU? On June 1, 2013, the Personal Health Information Act (PHIA) comes into force in Nova Scotia. If you are involved in health care in Nova Scotia, you need to know whether PHIA…
Read MoreEDITOR’S COMMENT This edition of Atlantic Employers’ Counsel focuses on key areas of employment standards in Atlantic Canada. Employment standards legislation outlines the rights and obligations of employees and requirements that apply to employers in…
Read MoreNEW TORT OF CYBERBULLYING On May 10, 2013 the Nova Scotia legislature passed the Cyber-safety Act (Bill 61). When this bill comes into force, it will give rise to a new tort of cyberbullying that…
Read MoreGOVERNMENT ACTION In the Economic Action Plan 2010, the Harper Government committed to bring greater clarity to how mortgage prepayment penalties were calculated. As part of the commitment, on February 26, 2013 the government released…
Read MoreSTEWART MCKELVEY WELCOMES BACK WANDA DOIRON AS MANAGER, CORPORATE SERVICES – NOVA SCOTIA You might remember Wanda from her time in our Corporate Services group from 2002 to 2008. Since then, she has worked in-house…
Read MoreREASONABLE PEOPLE DOING QUESTIONABLE THINGS: CONFLICTS OF INTEREST AND JUST CAUSE Can a unionized employee moonlight in his off hours to earn some extra money by doing the same work he does for his daytime…
Read MoreStewart McKelvey’s Vision Improving Legal Analysis (SVILA*) is an e-discovery project and litigation management tool. For more information on our e-discovery services, download the SVILA e-discovery document.
Read MoreIN THIS ISSUE: A New Brunswick business lawyer’s perspective by Peter Klohn Why Canada’s immigration rules matter to your business by Andrea Baldwin Financing Energy Projects during the Project Lifecycle by Lydia Bugden, Colm St. Roch Seviour and Tauna Staniland Download…
Read More