BILL NO. 15

(as introduced)

2nd Session, 62nd General Assembly
Nova Scotia
63 Elizabeth II, 2014



Government Bill



Builders' Lien Act
(amended)



The Honourable Lena Metlege Diab
Minister of Justice



First Reading: October 2, 2014

(Explanatory Notes)

Second Reading: October 7, 2014

Third Reading: October 30, 2014 (LINK TO BILL AS PASSED)

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Explanatory Notes

Clause 1

(a) clarifies that, where a holdback is retained in relation to services or materials that remain to be supplied to complete a contract, the holdback may be released if the registration of the lien in relation to that contract is vacated under the Builders' Lien Act and the holdback is otherwise eligible for release;

(b) allows a person who has received notice of a lien to pay up to 90% of the price of the services or materials that have been supplied under the contract, less the amount of the holdback retained and an amount sufficient to satisfy the lien; and

(c) requires that, where a person retains a separate holdback in relation to services or materials that remain to be supplied to complete a subcontract that has been substantially performed, the person make payment of the original holdback retained under subsection 13(2) of the Act.

Clause 2 deems a subcontract that is certified complete to have been completed on the date of certification.

Clause 3

(a) clarifies when a payment may be made to reduce a holdback retained in relation to a contract that has been certified complete;

(b) clarifies that, where a holdback is retained in relation to a subcontract that has been certified complete, the holdback may be released if the registration of the lien in relation that subcontract is vacated under the Act;

(c) provides for the release of the holdback in relation to any subcontract to the completed subcontract upon the release of the holdback in relation to the completed subcontract; and

(d) provides that interest is payable at a rate of prime plus 2% on the holdback in relation to a subcontract certified as complete, or any subcontract thereto, if the holdback is not paid out within 65 days after the subcontract is certified complete.

Clause 4 provides that this Act comes into force on proclamation.

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An Act to Amend Chapter 277
of the Revised Statutes, 1989,
the Builders' Lien Act

Be it enacted by the Governor and Assembly as follows:

1 (1) Subsection 13(3) of Chapter 277 of the Revised Statutes, 1989, the Builders' Lien Act, as enacted by Chapter 14 of the Acts of 2013, is further amended by striking out "or discharged" in the second last line and substituting ", discharged or vacated".

(2) Section 13 of Chapter 277, as amended by Chapter 14 of the Acts of 2004, Chapter 8 of the Acts of 2005 and Chapter 14 of the Acts of 2013, is further amended by adding immediately after subsection (5) the following subsection:

(3) Subsection 13(7) of Chapter 277 is repealed and the following subsection substituted:

2 Section 13A of Chapter 277, as enacted by Chapter 14 of the Acts of 2013, is amended by adding immediately after subsection (3) the following subsection:

3 Section 13B of Chapter 277, as enacted by Chapter 14 of the Acts of 2013, is amended by

(a) adding "(1)" immediately after the Section number;

(b) striking out "in respect of the completed subcontract" in the fifth and sixth lines and substituting "that may be claimed against the holdback";

(c) striking out "or discharged" in the sixth line and substituting ", discharged or vacated"; and

(d) adding the following subsections:

4 This Act comes into force on such day as the Governor in Council orders and declares by proclamation.

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