What amount can I claim in a construction lien in Ontario?
You can lien the unpaid price of the services or materials you actually supplied to the improvement, including approved extras, less payments received. Under the Construction Act you cannot lien for amounts not yet earned, and the owner is entitled to retain the statutory 10% holdback. Deliberately exaggerating the lien amount can make you liable for resulting damages.
Does the 10% holdback reduce my lien?
The owner is required to hold back 10% of the value of the work as a statutory holdback under the Construction Act. Your lien attaches to the holdback fund, so the holdback is a source of security for your lien rather than a deduction from what you are owed. You are still owed the full earned value.
Can I include interest in my lien amount?
Yes. You can claim interest on the overdue amount at the contractual rate, or if the contract is silent, at the prejudgment interest rate. Prompt payment provisions in the Construction Act also entitle you to interest on amounts not paid within the statutory timelines.
What happens if I lien for too much?
Registering a wilfully exaggerated lien, or a lien for an amount you know is not owing, can result in the lien being discharged and you being ordered to pay the owner's damages and costs. Lien only the amount genuinely owing for work supplied.