The Builders’ Lien Regulations (R-031-2025), enacted under the authority of section 92 of the Builders’ Lien Act, set out the detailed administrative and procedural framework that supports the enforcement and application of builders’ lien rights in the Northwest Territories. These regulations aim to improve the consistency for parties engaged in construction projects, such as contractors, subcontractors, suppliers, and owners, by stipulating precise requirements for notices, thresholds, fees, and formal documents used throughout lien-related proceedings.

Section 3 outlines monetary thresholds to determine “substantial performance” of a contract, establishing the amounts at $1,000,000 for both relevant subparagraphs in the Act. Substantial performance is a key concept in lien law, as it affects when liens may be filed and how payment obligations are triggered.

The regulations continue by setting out standardized forms for key communications: a notice to the contractor (Form 2) and a notice to a lien claimant (Form 3), both required under specific provisions of the Act. These notices are essential procedural elements that ensure due process and timely information sharing among parties to a construction contract. For example, where holdbacks are not paid, or claims are made against them, the corresponding notices must be issued and received within tight timelines, typically within three days of prior notifications.

Regarding financial holdbacks—a core mechanism in lien law designed to protect subcontractors and suppliers—the regulations specify that for certain provisions to apply, the contract price must be $10,000,000 or more. This threshold applies both to section 29(2)(c) and section 30(2)(b) of the Act, reinforcing the focus on large-scale contracts and providing certainty on when specific financial protections are activated.

Section 8 establishes the process for publishing key construction project events, such as notices of non-payment of holdbacks, terminations, certificates of substantial performance, or declarations of such performance. Anyone required to publish these must submit a formal proposal using Form 4, along with a non-refundable fee and any additional information requested by the Registrar. The Registrar has the authority to approve or reject such proposals and may impose conditions on any approvals. This process standardizes public disclosure requirements and helps maintain transparency in contractual relations.

The regulations also prescribe forms for the declaration of last supply (Form 6), notice of termination (Form 7), certificates and declarations of substantial performance (Forms 8), and completion of subcontracted work (Form 9). Each of these documents plays a role in marking critical milestones in construction projects that affect lien rights and payment timelines. For instance, declaring substantial performance can trigger the countdown for lien filings or payment release.

Northwest Territories (031-2025) April 30, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion