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Overview

The Department of Justice engaged external stakeholders regarding potential areas for change in replacing the Mechanics Lien Act.

The Mechanics Lien Act governs the payment relationship between owners, contractors, subcontractors, labourers, and providers of materials on a construction project.

The Act provides a dispute resolution mechanism whereby a participant in a construction project can file a claim against the property being improved, and enforce that claim in court in the event that they are not paid what is owed to them as wages or under an invoice.

Such legislation exists in every jurisdiction in Canada. In 2020 new legislation was adopted in Alberta and Ontario. A review conducted by the Department of Justice concluded that the NWT Mechanics Lien Act should be repealed and replaced with more modern legislation