Toronto Construction Litigation Lawyer
Representing owners, contractors, subcontractors, and suppliers in construction disputes across Ontario.
By Paul Starkman & Calvin Zhang | Starkman & Zhang Lawyers | 30+ years litigation experience
A contractor has walked off the job mid-project. A homeowner refuses to pay for completed work. A subcontractor has registered a lien on your property, freezing your financing. Construction disputes in Ontario are governed by the Construction Act — a specialized statutory regime with strict deadlines that can permanently extinguish your rights if missed. Missing a 60-day lien preservation deadline or a 90-day perfection deadline means losing your claim entirely, regardless of its merits.
Construction Liens Under the Construction Act
The Ontario Construction Act (formerly the Construction Lien Act) provides contractors, subcontractors, and material suppliers with powerful security rights over improved property. A properly preserved and perfected construction lien gives a claimant a charge against the owner's interest in the land — a remedy that frequently proves more effective than an ordinary breach-of-contract claim.
Our firm handles every stage of the lien process: timely preservation within the strict 60-day deadline, perfection of the lien by commencing an action, and enforcement through to trial or settlement. We also defend owners and general contractors against lien claims that are exaggerated, improperly preserved, or otherwise vulnerable to discharge under s. 44 of the Act.
Timing is critical in construction lien matters — missing a statutory deadline by even one day can extinguish your rights entirely.
Construction Trust Claims
Part II of the Construction Act establishes a statutory trust regime that imposes fiduciary obligations on owners, contractors, and subcontractors who receive construction funds. Money received on account of a construction project constitutes a trust fund, and diverting those funds before paying subcontractors and suppliers down the chain is a breach of trust that can attract personal liability against directors and officers.
We prosecute trust claims on behalf of unpaid subcontractors and suppliers who have been denied payment because funds were improperly diverted. We also defend contractors and their principals against trust breach allegations, often by demonstrating that payments were applied in accordance with the statutory priority scheme.
Construction Delay & Deficiency Claims
Construction projects frequently give rise to disputes over delays, cost overruns, and deficient workmanship. Whether you are an owner seeking damages for late completion and remediation costs, or a contractor defending against allegations of defective work, these claims require careful analysis of the construction contract, the project timeline, and the applicable standard of care.
Our firm has litigated delay claims involving liquidated damages clauses, extension-of-time provisions, and force majeure defences. We also handle deficiency claims arising from building envelope failures, structural defects, and non-compliance with the Ontario Building Code. In each case, we work closely with engineering experts and quantity surveyors to quantify damages and build a compelling evidentiary record.
Prompt Payment & Adjudication
The 2019 amendments to the Construction Act introduced mandatory prompt payment timelines and an interim adjudication process designed to keep money flowing through the construction pyramid. Owners must now pay proper invoices within 28 days, and contractors must pay subcontractors within 7 days of receiving payment. Failure to pay or to issue a proper notice of non-payment triggers the right to refer the dispute to mandatory adjudication.
We represent parties in prompt payment adjudications before authorized nominating authorities, and we advise on compliance with the Act's notice and payment requirements to avoid costly disputes.
Ontario Construction Litigation: A Complete Legal Guide
For a comprehensive overview of construction litigation in Ontario — including lien preservation deadlines, holdback requirements, trust obligations, and the new prompt payment regime — read our detailed legal guide.
Read Ontario Construction Litigation: A Complete Legal GuideRepresentative Matters
Selected construction litigation matters our firm has handled in Ontario:
Infinite Construction v. Chen, 2022 ONSC 3929
Lien discharged + $1,185,000 cloud on title vacated under Construction Act s. 47 — equitable assignment failed; lien claimant not a “contractor”; lien rights had expired.
Infinite Construction v. Chen (Div Ct Appeal), 2023 ONSC 2627
Divisional Court dismissed the lien claimant’s appeal — affirmed the s. 47 lien discharge; $15,000 inclusive costs to our client.
Fusion Homes v. Sheikh (Construction Trial), 2025
Multi-day construction trial — substantive defence outcome on builder-side claims after a full trial on the documentary record.
Fusion Homes v. Sheikh (Div Ct Appeal), 2026
Divisional Court appeal disposition in the construction litigation context — affirmed the trial result.
Top Art Roofing (Appeal Dismissed), 2025
Construction lien appeal — appellate court affirmed the decision below in our client’s favour.
Xdream Home Renos v. Ng (Summary Judgment), 2026 ONSC 1124
$118,300 summary judgment plus $10,000 costs in a renovation invoice dispute under the Simplified Procedure.
Construction Litigation Articles
Discharging Wrongful Construction Liens
Section 47 motions, expiry under s. 31(3)(b), and clearing title under the Construction Act.
Excluding Defective Expert Evidence at Trial
1579959 Ontario v. Sheikh, 2025 ONSC 185 — voir dire that excluded the homeowner’s expert.
Ontario Contract Dispute Guide
Four-step strategy after a breach — applies to construction contracts.
Frequently Asked Questions
How long do I have to file a construction lien in Ontario?
Subcontractors and suppliers have 60 days from their last day of work or supply. Contractors with a direct contract with the owner have 90 days. These deadlines are absolute and cannot be extended — missing them by even one day permanently extinguishes your lien rights.
What is prompt payment and how does it affect my construction dispute?
Under the Construction Act, owners must pay proper invoices within 28 days. Contractors must pay subcontractors within 7 days of receiving payment. Failure to comply triggers mandatory interest and the right to refer the dispute to ODACC adjudication.
Can I still recover payment if my construction lien has expired?
Yes. Even after lien rights expire, you may pursue a breach of contract claim (subject to the 2-year limitation period) or a trust claim under Part II of the Construction Act. Trust claims can impose personal liability on directors and officers.
What is the 10% holdback and why does it matter?
The Construction Act requires each payer to retain 10% of all payments as security for lien claimants further down the chain. Releasing the holdback before the lien period expires puts the payer at risk of paying twice. Contact us for advice on holdback obligations.
Construction Lien Deadlines Are Unforgiving
Under the Construction Act, you have as few as 60 days to preserve a lien. If you are an owner facing an exaggerated claim or a contractor who has not been paid, contact us immediately—every day matters.
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