Lac Ste. Anne County wishes to clarify that there is zero impact to the Administration Building Budget from builders' liens.
A Construction Lien, also known as a Builders’ Lien, is a claim made against a property by a Contractor or other professionals who have supplied labour or materials for work on that property. Construction liens are designed to protect professionals from the risk of not being paid for services rendered, and are not uncommon in large capital building projects where disputes between parties do occur. The Builders’ Lien Act in Alberta requires everyone in the contractual chain, starting from the project owner, to retain a holdback for possible disputes.
The purpose of these holdbacks, under the Builders’ Lien Act, is both to provide security for Contractors and Subcontractors who supply labour and/or materials to a construction project and to limit the liability of owners, who have hired and paid a general contractor, against liens filed by subcontractors further down the contractual chain.
As of May 30, 2017, there are five Builder’s Liens, totalling approximately $395,000, registered against Lac Ste. Anne’s new Administration Office being built by Casman Construction near Sangudo, Alberta. The liens all relate to disputes between the Contractor (Casman Construction) and five Subcontractors.
For Lac Ste. Anne County’s New Administration Office, the County maintains a Builders’ Lien Holdback for the project that will be held until all liens are discharged, a Certificate of Substantial Performance is issued, and the prescribed waiting period is completed. As the County has appropriate holdbacks in place, these Builders’ Liens are not likely to delay the project or cause a budget overrun for the new Administration Building.