More Protection for Builders, Trades

Legislation to protect construction tradespeople and suppliers will take effect on Jan. 1, 2005, it was announced today, Oct. 16, by Premier John Hamm, in a speech to the Construction Association of Nova Scotia.

The Builders' Lien Act, formerly the Mechanics' Lien Act, will help ensure that builders and suppliers get paid for their work. The legislation was introduced by Justice Minister Michael Baker on April 21.

"Government has an important obligation to the industry," said Premier Hamm. "Workers need security, not just the physical security on the site -- but the economic security that their work, their time and their effort, will get paid for."

Mr. Hamm also thanked the Construction Association of Nova Scotia, and president Carol MacCullough, for their valuable input into the legislation.

"These new changes -- these new protections are a result of this collaboration in action. Construction projects can involve many different contracts. Therefore, one party's inability or refusal to pay, especially if it's at the top of the construction pyramid, can harm various contractors and suppliers on the project."

The legislation would give builders and suppliers extra time to register a lien -- 60 days as opposed to 45. It would also create a legal trust so funds are set aside by the property owner to pay all the expenses for services or goods. Similar provisions exist in most other provinces.

There are also new provisions for those using arbitration to resolve disputes.

cb 2 p.m. Saturday, Oct. 16, 2004