Acts and Regulations

M-6 - Mechanics’ Lien Act

Section 15
Disposition versions

Full text
Hold back
15(1)An owner liable upon a contract under which a lien may arise shall deduct from any payments made by him thereunder and subject to section 17 retain for a period of sixty days after the completion or abandonment of the contract an amount equal to twenty per cent of the value of the work done and of the material furnished to be used, irrespective of whether the contract provides for instalment payments or payment on completion of the contract.
15(2)The value mentioned in subsection (1) shall be calculated on the basis of the contract price, or, if there is no specific price, then on the basis of the actual value of the work and material.
15(3)Where the value of the work and material exceeds fifteen thousand dollars, the amount to be retained shall, except as hereafter mentioned, be equal to fifteen per cent instead of twenty per cent of the value of the work and materials calculated as aforesaid, but shall not be less than the sum required to be retained pursuant to subsection (1) when the value is fifteen thousand dollars.
15(4)Where
(a) a contract is under the supervision of an architect, engineer or other person upon whose certificates payments are to be made,
(b) the architect, engineer or other person referred to in paragraph (a) certifies to the owner and to a sub-contractor that the sub-contract has been completed to his satisfaction,
(c) sixty days have elapsed after the certificate referred to in paragraph (b) was delivered to the owner and sub-contractor, and
(d) no claim of a lien derived under that sub-contract is filed under section 20 or all such liens are discharged pursuant to section 30 hereof,
the owner shall reduce the amount to be retained by him by
(e) fifteen per cent or twenty per cent, as the case may be, of the sub-contract price, or
(f) where there is no specific sub-contract price, fifteen per cent or twenty per cent, as the case may be, of the actual work, service performed or materials furnished under that sub-contract.
15(5)Where a certificate issued by an architect, engineer or other person to the effect that a sub-contract by which a sub-contractor became a sub-contractor has been completed to the satisfaction of that architect, engineer or other person has been given to that sub-contractor, then for the purposes of subsections 24(2), (3) and (4) and section 27 that sub-contract and any materials furnished or to be furnished thereunder and any work or services performed or to be performed thereunder shall, so far as concerns any lien thereunder of that sub-contractor, be deemed to have been completed or furnished not later than the time at which the certificate was so given.
15(6)Every lien is a charge upon the amount directed by this section to be retained in favour of the lienholders who have done work or furnished material for
(a) the contractor to whom the money so required to be retained is payable, or
(b) his sub-contractor.
15(7)All payments up to eighty per cent as fixed by subsection (1) or up to eighty-five per cent as fixed by subsection (3) and payments permitted as a result of the operation of subsections (4) and (5) made in good faith by an owner to a contractor, or by a contractor to a sub-contractor, or by one sub-contractor to another sub-contractor, before notice in writing of the lien given by the person claiming the lien to the owner, contractor or sub-contractor, as the case may be, operate as a discharge pro tanto of the lien.
15(8)Every contract is amended in so far as is necessary to be in conformity with this section.
15(9)Where a contractor or sub-contractor makes a default in completing his contract, the amount required to be retained under this section shall not, as against a lienholder, be applied by the owner, contractor or sub-contractor to the completion of the contract or for any other purpose than the satisfaction of liens.
R.S., c.142, s.14; 1960, c.49, s.1, 2, 3, 4; 1965, c.27, s.6
Hold back
15(1)An owner liable upon a contract under which a lien may arise shall deduct from any payments made by him thereunder and subject to section 17 retain for a period of sixty days after the completion or abandonment of the contract an amount equal to twenty per cent of the value of the work done and of the material furnished to be used, irrespective of whether the contract provides for instalment payments or payment on completion of the contract.
Hold back
15(2)The value mentioned in subsection (1) shall be calculated on the basis of the contract price, or, if there is no specific price, then on the basis of the actual value of the work and material.
Hold back
15(3)Where the value of the work and material exceeds fifteen thousand dollars, the amount to be retained shall, except as hereafter mentioned, be equal to fifteen per cent instead of twenty per cent of the value of the work and materials calculated as aforesaid, but shall not be less than the sum required to be retained pursuant to subsection (1) when the value is fifteen thousand dollars.
Completion of sub-contract
15(4)Where
(a) a contract is under the supervision of an architect, engineer or other person upon whose certificates payments are to be made,
(b) the architect, engineer or other person referred to in paragraph (a) certifies to the owner and to a sub-contractor that the sub-contract has been completed to his satisfaction,
(c) sixty days have elapsed after the certificate referred to in paragraph (b) was delivered to the owner and sub-contractor, and
(d) no claim of a lien derived under that sub-contract is filed under section 20 or all such liens are discharged pursuant to section 30 hereof,
the owner shall reduce the amount to be retained by him by
(e) fifteen per cent or twenty per cent, as the case may be, of the sub-contract price, or
(f) where there is no specific sub-contract price, fifteen per cent or twenty per cent, as the case may be, of the actual work, service performed or materials furnished under that sub-contract.
Certificate of architect respecting sub-contract
15(5)Where a certificate issued by an architect, engineer or other person to the effect that a sub-contract by which a sub-contractor became a sub-contractor has been completed to the satisfaction of that architect, engineer or other person has been given to that sub-contractor, then for the purposes of subsections 24(2), (3) and (4) and section 27 that sub-contract and any materials furnished or to be furnished thereunder and any work or services performed or to be performed thereunder shall, so far as concerns any lien thereunder of that sub-contractor, be deemed to have been completed or furnished not later than the time at which the certificate was so given.
Lien is charge
15(6)Every lien is a charge upon the amount directed by this section to be retained in favour of the lienholders who have done work or furnished material for
(a) the contractor to whom the money so required to be retained is payable, or
(b) his sub-contractor.
Bona fide pay-out by owner
15(7)All payments up to eighty per cent as fixed by subsection (1) or up to eighty-five per cent as fixed by subsection (3) and payments permitted as a result of the operation of subsections (4) and (5) made in good faith by an owner to a contractor, or by a contractor to a sub-contractor, or by one sub-contractor to another sub-contractor, before notice in writing of the lien given by the person claiming the lien to the owner, contractor or sub-contractor, as the case may be, operate as a discharge pro tanto of the lien.
Amendment of contract
15(8)Every contract is amended in so far as is necessary to be in conformity with this section.
Liability of owner on default of contract
15(9)Where a contractor or sub-contractor makes a default in completing his contract, the amount required to be retained under this section shall not, as against a lienholder, be applied by the owner, contractor or sub-contractor to the completion of the contract or for any other purpose than the satisfaction of liens.
R.S., c.142, s.14; 1960, c.49, s.1, 2, 3, 4; 1965, c.27, s.6