Skip to content

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.

SHARE

Archive

Search Archive


 
 

Newfoundland and Labrador adopts virtual Alternate Witnessing of Documents Act – for good this time!

June 1, 2023

By Joe Thorne and Megan Kieley Background During the COVID-19 public health emergency order in Newfoundland and Labrador, the government passed the Temporary Alternate Witnessing of Documents Act, which (as the name implies) temporarily permitted…

Read More

The great IP debate in Canada

May 31, 2023

By Daniela Bassan, K.C. Daniela Bassan, K.C. is a Partner and Practice Group Chair at the law firm of Stewart McKelvey (Canada) where she focuses on intellectual property and complex, multi-jurisdictional dispute resolution. The premise…

Read More

New Brunswick introduces prompt payment and adjudication legislation

May 24, 2023

By Conor O’Neil and Maria Cummings On May 9, 2023, two bills were introduced in the New Brunswick Legislature that could have material affects on the construction industry. Bills 41 and 42, of the current…

Read More

10 LMIA recruitment and advertising tips for employers looking to hire foreign workers

May 24, 2023

Author Sara Espinal Henao, an Immigration Lawyer in our Halifax office, will be speaking on a related panel, Labour Market Impact Assessments Overview and Current Trends, at the upcoming CBA Immigration Law Conference in Ottawa,…

Read More

Hiring internationally in the film & television industry: 5 things you should know

May 23, 2023

Author Brendan Sheridan, an Immigration Lawyer in our Halifax Office, will be running a related webinar on May 30, 2023, Avoiding immigration bloopers: A webinar for the film & television industry, in partnership with Screen…

Read More

Whose information is it anyway? Implications of the York University decision on public and private sector privacy and confidentiality

May 19, 2023

Included in Discovery: Atlantic Education & the Law – Issue 12 By Charlotte Henderson Privacy and confidentiality requirements are some of the most important responsibilities of organizations today. An organization’s ability to properly manage information,…

Read More

Are Non-Disclosure Agreements on their way out?

May 15, 2023

Included in Discovery: Atlantic Education & the Law – Issue 12 By Hilary Newman & Jacob Zelman A non-disclosure agreement, or “NDA”, is a legal contract in which two or more persons agree to keep the…

Read More

The General Anti-Avoidance Rule: more changes coming in 2023

May 12, 2023

By Graham Haynes & Isaac McLellan  Introduction The Canadian federal budget was unveiled on Tuesday, March 28, 2023 (“Budget 2023”)1 , and proposes significant changes to the General Anti-Avoidance Rule (the “GAAR”) in Canadian tax…

Read More

When closed doors make sense: Court dismisses challenge to university board’s procedure for in camera discussions

May 11, 2023

Included in Discovery: Atlantic Education & the Law – Issue 12 By Scott Campbell, Jennifer Taylor, Folu Adesanya A long-standing dispute over governance practices at the Cape Breton University Board of Governors was recently resolved…

Read More

When Facebook goes faceless: unmasking anonymous online defamation

May 9, 2023

Included in Discovery: Atlantic Education & the Law – Issue 12 By Jon O’Kane & Emma Douglas These days it seems no one is immune from the threat of anonymous keyboard warriors posting untrue and…

Read More

Search Archive


Scroll To Top