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FACT SCENARIO: The Tower X building project in downtown Toronto is nearing completion. The Project consists of the construction of a new 28 storey tower

FACT SCENARIO:

The Tower X building project in downtown Toronto is nearing completion. The Project consists of the construction of a new 28 storey tower which includes commercial space and luxury condominiums. The owner of the Project, Buildings R Us, is financing the work through a bank loan secured by a mortgage.

Buildings R Us is using a general contractor, Bob the Builder to construct the project. Buildings R Us and Bob the Builder entered into a CCDC 2 construction contract for Bob the Builders work on the project in the amount of $20,000,000.00 (20 million) on January 6, 2019. Bob the Builder subcontracted with various trades to complete specialized elements of the scope of work required under the contract.

The project is nearing completion, and the building is now topped off and enclosed. Only the finishing trades (painting, carpeting, trim, etc.) are still performing work. All other subcontractors and trades have demobilized from the site. The elevator subcontractor hired by Bob the Builder, Darth Ele-Vader Ltd. had its last day of work on Monday, March 8, 2021. A Certificate of Substantial Performance for the project was published on March 23, 2021.

Darth Ele-Vader Ltd. has a subcontract for the elevator installation with Bob the Builder for $4,000,000.00 ($4 Million) plus H.S.T. Darth Ele-Vader Ltd. invoiced on a monthly basis as the work progressed, but some of the invoices have now been left unpaid. The total amount unpaid by Bob the Builder to Darth Ele-Vader Ltd. is $1.5 million plus tax.

Question

  1. In this scenario, what event(s) start the time running for any initial deadlines under the Construction Act for Darth Ele-Vader Ltd. to complete any initial steps required to secure their lien rights? Explain your thinking with reference to the Construction Act.
  2. Under the Construction Act, what, if any deadlines does Darth Ele-Vader Ltd. need to watch for in order to protect their lien rights? What procedural steps does Darth Ele-Vader Ltd. need to take prior to any such deadlines to protect their lien rights under the Construction Act?

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