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.
Archive
Stewart McKelvey is pleased to present Energy Watch – a review of key legislative and policy advancements in the renewable energy sector in 2023 in each of Newfoundland and Labrador, Nova Scotia and New Brunswick…
Read MoreWe are pleased to present Beyond the border: A year end immigration wrap-up. Compiled by Lawyers from our Immigration team, this 2023 update covers topics including the Government of Canada’s ambitious immigration plans for the future;…
Read MoreBy Perlene Morrison, K.C., Hilary Newman & Curtis Doyle Once again, the time has come to review the year that was and to chart the course for the year ahead. For municipalities and planning professionals…
Read MoreBy Dave Randell, John Samms & Jayna Green A recent Government of Newfoundland and Labrador (“GNL”) announcement affirms the Province’s swift and ambitious approach to offshore wind development. While it may come as a shock…
Read MoreBy Sadira Jan, Dave Randell, Graham Haynes & Tyler Callahan On November 30, 2023, the Federal Government tabled Bill C-59, entitled An Act to implement certain provisions of the fall economic statement tabled in Parliament…
Read MoreBy Brendan Sheridan The Government of Canada has continued their whirlwind year of immigration program announcements by revealing their plan to modernize and improve the country’s immigration system. This plan, known as “An Immigration System…
Read MoreBy Christine Pound, ICD.D, Rebecca Saturley, & Daniel Roth Canada’s anti-modern slavery legislation comes into force on January 1, 2024. To prepare for the first reporting deadline on May 31, 2024, organizations need to determine…
Read MoreBy Brian Johnston, K.C. and Richard Jordan On November 9, 2023, Minister of Labour, Seamus O’Regan, introduced Bill C-58 in the House of Commons to amend the Canada Labour Code to prohibit the use of…
Read MoreBy Kevin Landry & Eryka Gregory The Retail Payment Activities Regulations (“Regulations”) under the Retail Payment Activities Act (“RPAA”) were finalized and published in the Canada Gazette Part II on November 23, 2023. The RPAA was…
Read MoreBy Level Chan When proclaimed in force, the Nova Scotia Private Sector Pension Plan Transfer Act (the “Transfer Act”) enacted by Bill 339, Financial Measures (Fall 2023) Act will allow the transfer of private sector…
Read More