UPDATE: Does the COVID-19 Suspension Order Affect Construction Liens & Statutory Holdbacks?
April 10, 2020
On April 7 we posted an article discussing issues created in the construction industry as a result of the Emergency Management and Civil Protection Act (the “Suspension Order”) issued on March 20th. There has been a great deal of debate among construction lawyers and in the construction industry as to the exact impact of the Suspension Order on the Construction Act timelines and limitations. However, all of that debate has been put to rest as the Attorney General just released a letter on April 9th advising the Suspension Order has been amended to:
“…lift the suspension of limitation periods and procedural time periods under the Construction Act. This will allow for the release of holdback payments to contractors and subcontractors in the normal course.”
As set out in the April 9 letter, the suspension of all Construction Act timelines will be formally lifted as April 16, to give the industry time to prepare and implement the changes.
Feel free to contact our Construction Team if you have any questions or would like to discuss the above.