Lien bonds play an important role in helping construction projects move forward when a payment dispute leads to a construction lien on a property. Disputes are a normal part of doing business, especially in the construction world where payments, timelines, and materials all need to stay on track. When a disagreement over payment happens, it can lead to a construction lien being placed on the property, which can slow everything down until the issue is resolved

In Ontario construction contracts, payment timelines have always been a contentious issue, especially when general contractors insert pay-when-paid clauses into agreements with subcontractors. These clauses typically state that the contractor will not pay the subcontractor until the contractor themself has been paid by the project owner. While that may seem like a fair approach to protect against cash flow crunches, it often leaves subcontractors stuck waiting for payment—sometimes indefinitely—even after they have completed their work.

Limitation periods related to construction contracts are essential to understand, whether it is a contract between a construction company and a contractor, municipality or business. In Ontario, these legal deadlines set the window for taking action and missing them can result in losing the right to pursue a claim altogether. Ensuring your contract reflects these timelines and protects your business if a dispute arises is a key reason to work with a construction lawyer. These are the basics of Ontario construction law limitation periods to consider.

When builders and contractors find themselves in legal construction disputes, the underlying causes are often familiar. At Gionet Fairley Wood LLP, we frequently assist clients facing construction litigation issues and offer practical strategies to prevent conflicts from escalating. Let’s take a look at the most common issues that lead to litigation.