QUESTION

My understanding is that it's not allowable to release part of the lien holdback during the life of a project. In my particular situation, a project comprised of one major water/sewer scope and another major electrical scope is dragging on. The project itself is 18 months along and the water/sewer work has been done for several months now. What remains is some connection work in the electrical scope (substation replacement, requiring multiple shutdowns, reconnections etc.) that is dependent on BC Hydro reviewing as-built documentations, scheduling time for a shutdown, etc. That could be another 3 to 5 months from today.

Clearly the contractor is getting anxious about the way he is essentially financing the project with the 10% holdback. Is there any way under the MMCD that the lien clock can be set to ticking for the work that has been completed and is actually already in use?

COMMENT

The Contract Considerations Video should provide the answer (which is generally “No”). This is due to the Builders Lien Act, not our document. The video suggests a work around. Check out “Contract Considerations" video, “Partial vs Staged Substantial Performance".