The Construction Lien Act Liens, Trusts and Rights to Information

Transcription

1 The Construction Lien Act Liens, Trusts and Rights to Information Michael Swartz WeirFoulds LLP Ontario Association of Architects 2017 Admission Course May 26, 2017

2 Overview What we ll cover The Construction Lien Act overview Purpose Definitions (old AND new) Essential lien basics: Substantial Performance Timing of Lien Rights Holdbacks Distribution of monies 2

3 Overview What we ll cover Construction Trusts: trust basics the different trusts: Owner s/contractor s/ Subcontractor s trust obligations personal liability of trustees Do s and Don ts Section 39 Information Rights 3

4 The Construction Lien Act What is the purpose? Provide a degree of security of payment for trades and suppliers on a construction project: lien rights trust rights Provide contractors, trades and suppliers with rights to information 4

5 The Construction Lien Act How does CLA protect payment? creates a scheme for pooling funds for the benefit of those lower in the pyramid, with the funds secured by the project lands - LIEN RIGHTS prevents monies for project flowing out of the pyramid while contractors, trades and suppliers remain unpaid - TRUST RIGHTS 5

6 The Construction Lien Act The basic CLA principles: you cannot contract out of lien and trust rights contracts and subcontracts are deemed to be amended so as to comply with the CLA the rights available are strictly construed, i.e. you must fit within the rules or lose the benefit 6

7 The Lien Claim Lien basics: the right to lien substantial performance timing of lien rights distribution of holdback and contract funds 7

8 The Right to Lien Who has a right to lien? A person who supplies services or materials to an improvement for an owner, contractor or subcontractor, has a lien upon the interest of the owner in the premises improved for the price of those services or materials 8

9 The Lien Claim Key Definitions: supply of services supply of materials improvement owner, contractor, subcontractor premises price 9

10 who supplies services Supply of Services means... any work done or service performed upon or in respect of an improvement and includes, a) the rental of equipment with an operator, and b) where the making of the planned improvement is not commenced, the supply of a design, plan, drawing or specification that in itself enhances the value of the owner s interest in the land 10

11 who supplies services architects, engineers? project/construction managers? site security services? transportation of materials? 11

12 supplies materials Materials are movable property which becomes part of the improvement is intended to become part of the improvement is used to make the improvement is used to assist in making the improvement e.g. forms, equipment rental, fuel 12

13 supply materials Supply of Materials occurs when... materials are placed on the land where the improvement is being made materials are placed on designated lands adjacent to the project materials are incorporated or used in making the improvement 13

14 ... to an improvement What is an Improvement? The definition changed in 2010 through the Open for Business Act, 2010 (Bill 68) 14

15 The Improvement definition of improvement has been replaced with new definition most significant change to the CLA under Bill 68 arises out of the Kennedy Electric case Kennedy Electric Limited v. Dana Canada Corporation, 2007 ONCA 664 (CanLII) result of lobbying by trade contractors 15

16 The Improvement (Former) Definition improvement means any alteration, addition or repair to, or any construction, erection or installation on, any land, and includes demolition or removal of any building structure or works or part thereof 16

17 Bill 68 Improvement new definition created to include the Kennedy situation within the scope of available lien rights grants a lien in circumstances where the work involves installing machinery and equipment which is critical to the business housed in the building 17

18 ... to an improvement (New) Definition Improvement means? any alteration, addition or repair to the land, any construction, erection or installation on the land, including the installation of industrial, mechanical, electrical or other equipment on the land or on any building, structure or works on the land that is essential to the normal or intended use of the land, building, structure or works, or the complete or partial demolition or removal of any building, structure or works on the land 18

19 for an owner Who is the Owner?...a person: who requested work to be done AND on whose behalf work is done, or either who gave credit for, contracted for, consented to, or directly benefited from the work not necessarily the registered owner of the property (could be tenant, mortgagee, etc.) 19

20 for an owner Special types of Owners Federal Government and federal works are not affected by Construction Lien Act Provincial Government & Crown Agencies all property is exempt from registration of liens Municipalities roads exempt but otherwise, it s like any other private owner and subject to liens 20

21 for an owner, contractor Who is the Contractor? A person who contracts with or is directly employed by the owner, or the owner's agent 21

22 owner, contractor, or subcontractor Who is a Subcontractor? A person contracting with a contractor or another subcontractor, but not with the owner 22

23 Traditional Construction Pyramid Owner General Contractor Subcontractor Supplier Subcontractor Supplier Worker Sub-subcontractor 23

24 Traditional Construction Pyramid Owner Contractor Subcontractor Subcontractor Subcontractor Subcontractor Worker * Subcontractor 24

25 Construction Management Pyramid Construction Manager Owner Trade Contractor Supplier Trade Contractor Supplier Worker Subcontractor 25

26 Construction Management Pyramid Owner Contractor Contractor Contractor Contractor Subcontractor Worker Subcontractor 26

27 Consultant Pyramid Owner General Contractor Architect M/E Engineers Specification Writer Structural Engineer Printer Engineers Engineers Engineers 27

28 Consultant Pyramid Owner Contractor Contractor Subcontractor Subcontractor Subcontractor [Subcontractor] Subcontractor Subcontractor Subcontractor 28

29 in the premises improved What is the lien against? Lien attaches to the land, building, materials and related lands enjoyed therewith Only the owner s interest in the premises can be subject of the lien e.g. the lienable interest may be just a tenancy 29

30 in the premises improved Improvement Materials 30

31 in the premises improved Improvement Land Materials 31

32 in the premises improved Improvement Lands Enjoyed Therewith Land Materials 32

33 for the price of those services or materials. How is price determined? Price is the contract or subcontract price: agreed on by the parties, or where no agreement, the actual value of the supply of services or materials if contract or subcontract not yet complete, involves estimate of value based on total price 33

34 Special Situations Special types of liens The general lien (s.20) Prevenient arrangements Leasehold interests (s.19) Condos s

35 the General Lien When is it available? One contract for work on more than one lot Same owner for all lots Contract doesn t say: lien rights expire on a lot by lot basis 35

36 the General Lien What do you lien? All lots remaining in the owner s hands Whether worked on remaining lots or not Claim for full amount owing for all lots worked on 36

37 the General Lien $25,000 owed for each of 5 houses Lien for $125,000 on 6 houselots 37

38 Prevenient Arrangements Special case for material suppliers Informal arrangement for ongoing supply Lien rights revive with each new supply Deemed Completion doesn t apply even if supply directly to owner 38

39 Leasehold Improvements Working on tenant s space written notice to landlord under s. 19 may put landlord on the hook as owner unless landlord denies responsibility within 15 days non-rent defaults: lien survives against leasehold premises rent default: lien claimant can pay rent to save lease and protect lien 39

40 Condominiums New Section 33.1 re Condos An owner must give 5-15 days notice that it intends to register the project as a Condo Owner s Name and Address Overview of the Land Description Contractor Information, where known and required 40

41 Substantial Performance When is it reached? Qualitative test: improvement or a substantial part is ready for use or being used as intended AND Quantitative test: formula is satisfied for remaining work and known defects 41

42 Substantial Performance Key Milestone... Certified by the payment certifier for the project or agreed between owner and contractor if no payment certifier Certificate (Form 6) published in the Daily Commercial News If not published, not effective! 42

43 Substantial Performance Assume $1.4M What is the formula? contract price... $15,000 3% of first $500,000 ($1,400K - $500K = $900K) 2% of second $500,000 ($900K 500K = $400K) 1% of balance of contract price (1% of $400K) $10,000 $4,000 Total: $29,000 (97.9%)

44 Substantial Performance Assume $750K What is the formula? contract price... $15,000 3% of first $500,000 ($750K - $500K = $250K) 2% of second $500,000 ($250K) 1% of balance of contract price (1% of $0) $5,000 $0 Total: $20,000 (97.3%)

45 Substantial Performance Assume $10.5M What is the formula? contract price... $15,000 3% of first $500,000 ($10.5M - $500K = $10M) 2% of second $500,000 ($10M 500K = $9.5M) 1% of balance of contract price (1% of $9.5M) $10,000 $95,000 Total: $120,000 (98.9%)

46 46

47 Completing the Certificate It s one or the other! Either the lien claim is to be registered against the title to the property (Line A completed) OR The lien claim is to be delivered to applicable government office (Line B completed) 47

48 48

49 Pursuing Lien Rights It s a two-step process... Preserve the lien within time AND - CLAIM FOR LIEN Perfect the lien within time - LIEN ACTION if neither step is taken, the lien is no longer valid 49

50 Preserving the Lien How is Preserving done? By registering a Claim for Lien against title to premises, usually by electronic registration against Special Owners serve Claim for Lien without registration: Provincial Government projects Municipal roads 50

51 Preserving the Lien What document is used? Claim for Lien form (Form 8): names, parties, dates of supply, description of work, amount claimed to be owing for work done supported by sworn affidavit of verification can t lien for interest and damages (e.g. lost profits) 51

52 Preserving the Lien What if there is a mistake in the Claim for Lien? minor irregularities can be corrected, as long as no one was prejudiced (s.6) liening the wrong land cannot usually not be corrected unless lands enjoyed therewith failure to have affidavit of verification is fatal flaw unless lien registered electronically 52

53 Preserving the Lien The wrong amount? Liened too late? If the lien claim is preserved or written notice of a lien is given: where the person knows or ought to know the amount is grossly excessive, or where the person knows or ought to know that he/she doesn t have a lien......the person is liable to anyone who suffers damages (s.35) 53

54 Vacating the Claim for Lien Getting the lien off the title... any party can put up security with the court to clear the title to the premises allows owner and mortgagee to deal with land security can be cash, letter of credit or lien bond lien becomes charge against security not land 54

55 Vacating the Claim for Lien Other ways of getting the lien off the title... The lien claim may be settled and a Release of Lien is registered discharging the lien The lien may have been preserved or perfected out of time and a court orders that it has expired 55

56 Perfecting the Lien Starting the Lien Action Must be started within 45 days after lien period would have expired If lien still on title, Certificate of Action registered within 45 day time period to prove action started May be possible to shelter under another lien action without starting own action 56

57 Perfecting the Lien What claims can be made in the action? lien breach of contract, including damages interest on monies owed only lien claim is secured by the lien 57

58 Perfecting the Lien Who are the defendants? Contracting Party - for debt Owner - for holdback Mortgagee(s) - for priority Party posting security for lien 58

59 Timing of Lien Rights Key definitions Substantial Performance Contractor: Deemed Completion Abandonment Subcontractor: Date of last supply 59

60 Timing of Lien Rights Contractors... For work up to substantial performance : Lien expires 45 days after the earlier of Date Certificate of Substantial Performance is published Completion Abandonment 60

61 Timing of Lien Rights Contractors... For work post- substantial performance or where no certificate is published Lien expires 45 days after the earlier of Completion Abandonment 61

62 Completion When is the contract completed? historically, factors to consider included: when was contractor able to sue for full account? was last work was done in good faith to complete contract or just to revive lien rights? was last work really warranty or guarantee work? was last work done on extras outside original contract work? 62

63 Completion How to determine if contract is finished... CLA created deemed completion time starts running on lien expiry period even if contract is not actually finished applies only to contracts, not subcontracts 63

64 Deemed Completion When is the contract deemed to be finished? Value of work left to complete or correct is lesser of $1,000 and 1% of contract price Ex. 1: a $1.4M contract is deemed to be completed when $1,000 left to do Ex. 2: a $45,000 contract is deemed to be completed when $450 left to do 64

65 Deemed Completion What s less than $1,000? BOTH the value of work left to complete AND the cost of correcting known defects and deficiencies must be taken into account in calculating deemed completion 65

66 Abandonment When has the contract been abandoned? point when it s clear contract is at an end mere suspension of work not enough not necessarily the last date actually worked e.g. may be when termination letter sent by owner when contractor makes clear no intention of returning to complete the work 66

67 Timing of Lien Rights Contract Work Commences Basic Certification Work Publication of of Certificate of Deemed Finishing Completion Actual Work Completion Substantial Substantial Performance Performance Typical project timeline 67

68 Timing of Lien Rights Scenario 1: Contractor is terminated before completion 45 days 45 days Contract Termination Work of begins the Contract Last day to Preserve Lien Last day to Perfect Lien 69

69 Timing of Lien Rights Scenario 2: Contract is substantially performed, but certificate not published Last day to Preserve Lien 45 days 45 days Contract Work begins Deemed Completion of the Contract Last day to Perfect Lien 71

70 Timing of Lien Rights Scenario 3: Contract is substantially performed, and certificate is published Publication Last day to Preserve Lien Substantial Contract Performance Work begins 45 days 45 days Last day to Perfect Lien 73

71 Timing of Lien Rights Scenario 3: Contract is substantially performed, and certificate is published Last day to Preserve Lien Substantial Performance Work Continues Last day to Perfect Lien 74

72 Timing of Lien Rights Scenario 3: Contract is substantially performed, and certificate is published Last day to Preserve Lien Substantial Performance Deemed Completion of the Contract 45 days Last day to Perfect Lien 45 days 75

73 Timing of Lien Rights Subcontractors... For work up to substantial performance : Lien expires 45 days after the earlier of Date Certificate of Substantial Performance published Date of last supply of services/materials Date subcontract was certified complete 77

74 Timing of Lien Rights Subcontractors... For work post- substantial performance or where no certificate is published Lien expires 45 days after the earlier of Date of last supply of services/materials Date subcontract was certified complete 78

75 Completion of Subcontract What is the process? Subcontractor declares last supply (Form 5) Contractor requests payment certifier to certify subcontract is complete (Form 7) Owner releases holdback prematurely for specific subcontract after time to lien has expired Contract has to provide that it is mandatory 79

76 80

77 Timing of Lien Rights Scenario 4: Subcontractor work prior to substantial performance 45 days 45 days Subcontract Date of Work begins Last Supply Last day to Preserve Lien Last day to Perfect Lien 81

78 Timing of Lien Rights Scenario 5: Early subcontract certified as having been completed 45 days 45 days Subcontract Work begins Certified Complete Last day to Preserve Lien Last day to Perfect Lien 83

79 Timing of Lien Rights Scenario 6: Substantial performance, publication, and late subcontractor Publication Last day to Preserve Lien Subcontract Substantial Work begins Performance 45 days 45 days Last day to Perfect Lien 85

80 Timing of Lien Rights Scenario 6: Substantial performance, publication, and late subcontractor Last day to Preserve Lien Substantial Performance Date of Work Continues Last Supply 45 days 45 days Last day to Perfect Lien 86

81 Limits on Lien Claim How much is the lien for? Regardless of amount claimed to be owing, lien is restricted to: Holdbacks + Contract monies owed, if any cannot recover more than the amount owing to payer of lien claimant, after holdbacks 91

82 Holdback What is the holdback obligation? Each payer on a contract or subcontract must hold back 10% of the price of the services or materials supplied under the contract or subcontract Owner is personally liable for holdback Failure to retain may lead to double payout 92

83 Holdback How does it come about? Holdback funds accumulate over course of project 10% deducted from each progress payment Don t need to hold back from bottom of the pyramid if no possible lien claimants further below 93

84 Contract Monies What if there is more owing than holdback? Lien is a charge against ALL monies owing by payer to defaulting contractor or subcontractor, not just holdback Payer can deduct own claims against the contract monies; holdback monies must stay intact 94

85 Distribution of Monies How is the money released where NO lien claims? Title search is done after time to lien has passed to ensure no liens registered If title is clear, remaining holdback monies are released by owner to contractor; contractor pays subcontractors 95

86 Distribution of Monies How is the money distributed with lien claims? Usually the result of a lien action in the courts Lien claimants with proven liens share pro rata with those others at the same level with the same payer those lowest on the pyramid are paid first 96

87 Distribution of Monies Liens have priority over: judgments executions assignments attachments garnishments receiving orders 97

88 Distribution of Monies Liens have limited priority over: mortgagees may have priority for any holdback shortfall depends on date of registration and timing of advances 98

89 Holdback How much is the lien for? Depends on size of available pot the claim of a lien claimant is made against funds held in the owner s hands composed of: Holdbacks PLUS Contract monies owed, if any 99

90 Holdback What is the holdback obligation? Each payer on a contract or subcontract must hold back 10% of the price of the services or materials supplied under the contract or subcontract Owner is personally liable for holdback Failure to retain may lead to double payout 100

91 Holdback How does it come about? Holdback funds accumulate over course of project 10% deducted from each progress payment made Don t need to hold back from bottom of the pyramid if no possible lien claimants further below 101

92 Holdback Obligation Owner (Payer) 10% Subcontractor 10% General Contractor (Payer) Supplier 10% Subcontractor (Payer) 10% Supplier Worker Subcontractor 102

93 Holdback Obligation Owner (Payer) 10% Subcontractor 10% General Contractor (Payer) Supplier 10% Subcontractor (Payer) 10% Supplier Worker Subcontractor 103

94 Contract Prices $1,400,000 Owner General Contractor $400,000 $650,000 $50,000 $150,000 Subcontractor $70,000 Supplier Subcontractor $200,000 Supplier Worker Subcontractor 104

95 Owner General Contractor Subcontractor Supplier Subcontractor Supplier Worker Subcontractor 105

96 $1,400,000 $1,260,000 Owner ($140,000) General Contractor Subcontractor Supplier Subcontractor Supplier Worker Subcontractor 106

97 $400,000 $360,000 ($40,000) Owner General Contractor ($140,000) Subcontractor Supplier Subcontractor Supplier Worker Subcontractor 107

98 ($40,000) $50,000 Owner ($140,000) General Contractor Subcontractor $50,000 Supplier Subcontractor Supplier Worker Subcontractor 108

99 ($40,000) Owner ($65,000) General Contractor ($140,000) $650,000 $585,000 Subcontractor Supplier Subcontractor Supplier Worker Subcontractor 109

100 Owner ($140,000) ($40,000) General Contractor ($65,000) $150,000 Subcontractor Supplier Subcontractor $150,000 Supplier Worker Subcontractor 110

101 Owner ($140,000) ($40,000) General Contractor ($65,000) Subcontractor Supplier $70,000 Supplier Worker Subcontractor Subcontractor $70,

102 Owner ($140,000) ($40,000) General Contractor ($65,000) Subcontractor Supplier Subcontractor ($20,000) $200,000 Supplier Worker Subcontractor $180,

103 Owner ($140,000) General Contractor ($105,000) Subcontractor Supplier Subcontractor Supplier Worker ($20,000) Subcontractor 113

104 Distribution of Monies How much is recovered through the lien claim? Regardless of amount claimed to be owing, lien claimant cannot recover no more than the amount owing to payer of lien claimant, including holdbacks 114

105 Limits on Lien Claim Holdback: $50,000 Contract Monies: $70,000 Owner Recovers $120,000 General Contractor Subcontractor Claim of $120,000 Limit of Lien: $120,

106 Limits on Lien Claim Holdback: $50,000 Contract Monies: $70,000 Owner Claim of $150,000 Recovers $120,000 General Contractor Subcontractor Limit of Lien: $120,

107 Limits on Lien Claim Holdback: $50,000 Contract Monies: $70,000 Owner General Contractor Combined Limit of Liens $120,000 Claim of $80,000 Subcontractor Subcontractor Claim of $70,000 Recovers $66,667 Recovers $58,

108 Limits on Lien Claim Holdback: $50,000 Contract Monies: $70,000 Backcharges:-$90,000 Owner General Contractor Combined Limit of Liens $50,000 (= Holdback) Claim of $80,000 Subcontractor Subcontractor Claim of $70,000 Recovers $26,777 Recovers $23,

109 What s Next? What other remedies are available to deal with the shortfall? normal civil lawsuit breach of trust action under the Construction Lien Act 119

110 The Lien Act Trust Provisions Part II of the Act

111 The Trust Basic trust principles... Fund held by a one party (Trustee) for the benefit of others (Beneficiaries) for a purpose Monies do not belong to the Trustee; monies belong to the Beneficiaries If the Trustee takes the funds for his or her own use or against purpose = breach of trust 121

112 The Trusts The essential definitions: Owner, Contractor, Subcontractor Improvement Substantial Performance 122

113 Lien Claim vs. Trust Claim What s the difference? The lien claim is: security against the premises for the value of the services and materials supplied subject to 45 day timing issues potentially limited to holdback fund may be shared with other lien claimants 123

114 Lien Claim vs. Trust Claim What s the difference? The trust claim is: a direct personal claim against the trustee for the total amount owing pursued to judgment in a separate non-lien action 124

115 Lien Claim vs. Trust Claim What s the difference? With the trust claim... timing of trust claim not limited to 45 day period amount of claim may be reduced by backcharges claimed by trustee action may be brought directly against the trustee s officers, directors and managers in addition to trustee 125

116 The Trusts The Rules... Project monies must stay within the project pyramid Those at the bottom of the construction pyramid get paid first Trustee and beneficiary are in direct contractual relationship 126

117 The Trusts The Trusts: The three Owner s trusts The Contractor s trust The Subcontractor s trust The Vendor s trust 127

118 The Three Owner s Trusts The trust funds held by the Owner #1: All amounts received by an Owner that are to be used in the financing of the improvement #2: All amounts which are certified as payable under a payment certificate #3: All amounts owing when substantial performance is certified 128

119 The Three Owner s Trusts Bank Owner Payment Certifier General Contractor X #1 The Financing Trust Subcontractor Subcontractor Subcontractor Supplier Worker Sub-sub Sub-sub Sub-sub 129

120 The Three Owner s Trusts Payment Certificate $ $ Payment Certifier Bank Owner $ General Contractor X #2 The Payment Certificate Trust Subcontractor Subcontractor Subcontractor Supplier Worker Sub-sub Sub-sub Sub-sub 130

121 The Three Owner s Trusts $ Certificate of Substantial Performance $ Payment Certifier Bank Owner $ General Contractor X #3 The Substantial Performance Trust Subcontractor Subcontractor Subcontractor Supplier Worker Sub-sub Sub-sub Sub-sub 131

122 The Contractor s Trust The Draws Trust (s.8(1)) All amounts owing to and received by a Contractor on account of the contract are a trust fund for the benefit of subcontractors who are owed money by the Contractor 132

123 The Contractor s Trust Bank Payment Certifier Owner The Draws Trust General Contractor X Subcontractor Subcontractor Subcontractor Supplier Worker Sub-sub Sub-sub Sub-sub 133

124 The Subcontractor s Trust The Draws Trust (s.8(1)) All amounts owing to and received by a Subcontractor on account of the subcontract are a trust fund for the benefit of subcontractors who are owed money by the Subcontractor 134

125 The Subcontractor s Trust Payment Certifier Bank Owner The Draws Trust General Contractor Subcontractor Subcontractor Subcontractor X Supplier Worker Sub-sub Sub-sub Sub-sub 135

126 The Vendor s Trust Sale Proceeds Trust (s.9(1)) If the Owner sells the property, the sale proceeds (after deducting reasonable expenses and any vendor take-back mortgage) are a trust fund for the benefit of the Contractor 136

127 Trustee s Obligation General Prohibition: Trustee cannot appropriate or convert any part of the trust fund for trustee s own use or a use inconsistent with the trust until all beneficiaries of the trust are paid all amounts owing in relation to the improvement 137

128 Permitted Uses Exceptions to the General Rule... Paying a beneficiary of the trust (s.10) Retaining from trust an amount used to pay for the improvement which are not subject to a trust (s.11(1)) Paying a lender back out of the trust fund monies borrowed for the project (s.11(2)) 138

129 Permitted Uses Exceptions to the General Rule (Cont d.) Retaining an amount equal to all outstanding debts, claims or damages, against the beneficiary whether or not related to the improvement (s.12) 139

130 Personal Liability Who could be on the hook (s.13(1))? Those who allow a breach of trust by the corporation (...assents to, or acquiesces in, conduct that he or she knows or reasonably ought to know amounts to breach of trust... ) are also personally liable for the breach of trust: every director and officer of a corporation any person who has effective control of a corporation or its relevant activities 140

131 Personal Liability Sections 13(2)-(4) question of effective control is one of fact without regard to the form of any transaction or separate corporate existence individuals are jointly and severally liable each individual s contribution may be equal or shared on some other proportionate basis 141

132 Personal Liability What the Courts say... dishonesty does not have to be shown good character or sincerity of the individual is irrelevant fact the individual may be unaware of the trust provisions of the CLA is not a defence it is a matter of strict liability 142

133 Personal Liability What happens to the participant? personal assets of the individual participant may be seized to satisfy the judgment nature of the claim may survive the bankruptcy of the individual 143

134 Right to Information s. 39 Can ask the owner and others for info... Who are the parties to the contract? What is the contract price? What is the state of accounts? Is there a Labour and Material payment bond? Do liens expire on lot-by-lot basis? 144

135 Summary The Top Ten Know who the owner is Know what the improved premises are Know how to calculate substantial performance don t forget deficiencies! Make sure proper holdback is retained Make sure there are no liens before releasing holdback 145

136 Summary The Top Ten (cont d ) Keep watch on your own lien rights Don t be afraid to use the lien process if necessary Do not allow diversion of funds from project or your firm, in breach of trust Know when to claim a breach of trust by the owner Know your rights to information 146

137 Questions Any Questions? Michael Swartz Graham Brown