The construction industry is plagued by credit risk. The contracts connecting the subcontractor, general contractor and owner are, by themselves, generally acknowledged to provide inadequate protection for creditors, particularly for the players at the lower tiers of a construction project. In an effort to compensate for the credit risks inherent in the construction industry, the Province of Ontario has enacted two statutory remedies to assist suppliers to obtain payment for their work: construction liens and construction trusts. Used judiciously, these are powerful remedies. In the wrong hands, they can lead to a litigation nightmare.
Our litigators protect lien and trust rights and defend against invalid claims. Our solicitors can restructure a business to reduce risk and eliminate any unnecessary exposure for the officers and directors.
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