What does the Builders' Lien Act establish?

The Builders' Lien Act establishes a legal mechanism that allows builders and contractors to file liens against a property for unpaid amounts owed to them for labor or materials supplied during construction or renovation. This provides builders with a security interest in the property, ensuring that they can claim compensation for their work if they are not paid as agreed. The act is fundamental in protecting the rights of builders and ensuring that they are compensated for their contributions to a project, thereby facilitating trust and accountability in the construction industry. This legal framework helps to deter non-payment and provides a clear process for builders to seek recourse if their payments are delayed or not honored.