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I'm erecting a steel building customer. I used a

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I'm erecting a steel building...
I'm erecting a steel building for my customer. I used a subcontractor to erect the building. He billed us for roof complete and when we inspected the roof we found out its not complete. We had to cancel the cheque until he completed and repaired his work. In that time we also performed other inspections and found out there were other jobs he billed saying they were complete that were not which he was paid for. We have told him that the previous work needs to be completed and repaired before any payments are released which he has refused to do unless his bill for roof complete is paid (it is not complete and needs repairs) Can he lien the property on those grounds? If he tries to how do we stop the lien from going through so the customer does not have issues? We have offered to put the money in trust until all work is repaired or completed which he refuses to do. As of right now the repairs could be more then whats owed on all the work.
Submitted: 2 years ago.Category: Canada Business Law
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Answered in 2 hours by:
8/18/2015
Business Lawyer: Legal Ease, Lawyer replied 2 years ago
Legal Ease
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What province is this, please?

When is the last time he worked on the property?

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Customer reply replied 2 years ago
Ontario. Two weeks ago
Business Lawyer: Legal Ease, Lawyer replied 2 years ago

In Ontario, a lien can be filed within 45 days of the work being substantially completed or within 45 days of the contractor walking off the job or being told to leave. There is no way to stop the contractor from filing the lien unless the money is paid. But, the way this works is that within another 45 days the contractor has to commence legal proceedings and obtain a Certificate of Pending Litigation, and register that on title as well. If the contractor fails to do that the lien will expire.

A lien does not really matter unless the property has to be refinanced or is going to be sold. If that is the case, then the owner of the property can pay what is allegedly owing into court and then the lien would be vacated and the money held into court until the trial.

Let me know if you need any further clarification.

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