What it means
In Alberta, lien rights are set out in the Prompt Payment and Construction Lien Act. Contractors, subcontractors and suppliers who contribute to an improvement can register a lien within a set time after their work ends if they are unpaid. A registered lien can affect the owner's ability to sell, finance or lease the property.
Owners hold back part of each payment to protect against such claims. The rules and timing are specific, and legal advice is wise.
Why it matters
A lien can cause serious problems for an owner even when the owner has paid the main contractor. Mortgage lenders and landlords often require proof that the work is lien-free. The risk grows with the number of subcontractors and suppliers.
Clear payment records and proper holdback practice protect owners.
How HSM handles it
HSM keeps its payment records current and supplies the documents owners and landlords need, such as statements confirming payment. Because our own crews perform most trades, we have far fewer subcontractors and suppliers who could file a claim, which lowers the overall risk.
We explain how holdback and release will work on your project, and we encourage owners to consult their lawyer. If a landlord or lender requires specific documents before releasing funds, tell us early and we will prepare them.
What to plan for
Keep copies of every invoice, payment and release. If you receive notice of a lien or a claim, contact your lawyer and us without delay.
Check your lease and your loan documents for lien-related requirements. They often include deadlines for discharging any lien that is registered.