The Builders’ Lien Act and its supporting regulations are now in force as of September 1, replacing the Mechanics Lien Act. The new legislation has been put in place to address current construction practices and to protect contractors, subcontractors, workers, and suppliers on construction projects.
The Builders’ Lien Act introduces a modern framework, aligning more closely to
practices in other Canadian jurisdictions. Liens are a key tool for contractors and sub-contractors to secure payment for the work they perform. They generally grant businesses a legal right to retain a customer’s property as security for payment or supplying building material to the property’s owner.The new Act includes clearer procedures, timelines, and enforcement mechanisms. These measures will better protect and define the rights and obligations of owners, developers, contractors and subcontractors. These legislative changes also bring new rules, forms, and processes. The new provisions apply to new contracts entered on or after September 1, 2025, and do not apply to existing contracts.
Quote
“The Builders’ Lien Act marks a significant advancement for economic development in the Northwest Territories. It takes into consideration the evolving best practices in the construction industry while recognizing the unique scale and character of the North.”
- Jay Macdonald, Minister of Justice
Quick facts
- The Builders’ Lien Act replaces the Mechanics Lien Act, which was first introduced in the NWT over 40 years ago.
- Similar lien legislation has been introduced and passed over the last few years by provincial governments in Ontario, Nova Scotia, Saskatchewan, British Columbia, Manitoba, New Brunswick, and Québec.
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