90 Questions
What is the purpose of the Builders Lien Act according to the text?
To secure financial interests of contractors and workers until they are fully paid.
What is the ultimate remedy available to lien claimants who remain unpaid?
Court-supervised sale of the lands.
Which of the following interests cannot be liened under the Builders Lien Act?
Federal Crown interests
Who has lien rights for their services under the Builders Lien Act?
Architects and engineers with a 'prime' consulting contract
What do lien claimants need to rely on in the absence of the Builders Lien Act?
Their contractual rights through lawsuits
Which types of interests can the lien security created by the Act attach to?
Nearly all registered or equitable interests in land
How is 'completed' defined under the Act?
When substantially completed or performed
What is the purpose of a 'threshold formula' mentioned in the text?
To prevent premature or frivolous applications for completion
When can the relevant lien holdback be safely released according to the text?
After 55 days of abandonment or termination of the head contract
What is the significance of missing or defective items in an improvement, as mentioned in the text?
They may jeopardize the performance of the improvement
What must architects be aware of in order to properly certify completion of a subcontract?
The subcontract's terms
When can the owner's holdback from the contractor be progressively released according to the text?
55 days after the head contract meets the statutory definition of 'complete'
What does the 'certification of completion for lien purposes' entail according to the text?
It requires a different analysis than other certifications
When must a lien be filed in the case of a single contractor (head contractor) engaged to do substantially all the work?
45 days after substantial completion of the head contract
In which situation is the lien filing deadline not based on the completion of a 'head contract'?
Owner sells the strata lot
What is the cost of filing a lien at the Land Title Office?
$5 per title
What action will cause a lien to be automatically extinguished?
Not initiating a lawsuit to enforce the lien within one year
When does the issuance of a Certificate of Completion trigger the lien filing period?
When requested by the contractor or subcontractor
What is required to retain lien holdback monies by both owners and contractors?
Depositing the monies into a dedicated trust account
In what situation will the issuance of a Certificate of Completion not extend the lien and holdback periods?
When completion has already occurred according to Act definitions
What is architects' responsibility regarding legal disputes between owners, contractors, and subcontractors?
To remain neutral and not 'take sides'
'Payment certifier' architects may find themselves responsible for preparing what under the Act?
A Certificate of Completion
In construction management projects with multiple contracts, when should a lien be filed?
45 days after substantial completion of the improvement
Who is responsible for requesting the publication of an advertisement of completion?
The owner
What is the importance of using forms of agreement consistent with provincial legislation?
To ensure the agreement is legally binding
What does the term 'lien holder' refer to under the Act?
A person entitled to a lien
When is the builders lien holdback typically triggered in a construction contract?
Once triggered by Substantial Performance of the work
In what situation do CCDC 5A, 5B, and 17 contracts attract their own holdback trust account?
When handled on their own merits
Under what circumstances do the Act's holdback provisions not apply?
When a design-build stipulated price contract is used
Which type of construction contracts are CCDC 2 and CCDC 3 considered to be?
Stipulated Price Contracts
What is General Condition 5.6 under CCDC 2 2008 related to?
Builders Lien Holdback Release
What is the main purpose of the standard owner/contractor form of contract?
To enable consistent lien holdback percentage stipulation
What additional action might be required to use CCDC 3 with BC lien legislation?
Supplementing the standard form of agreement
If a project owner is the provincial government, to whom does the holdback interest accrue after the holdback period expires?
Contractor
Who is responsible for the administration of holdback trust accounts as per the text?
Owner
Who can be designated as the payment certifier as per the Act?
Architect, engineer, or other person
What entities are exempted from the requirement to open a holdback account as per the Builders Lien Public Bodies Holdback Exemption Regulation?
Local governments, school boards, colleges and universities
What additional duties and responsibilities does the Act mention with regard to payment certification?
Multiple holdbacks, formula for completion determination, time lines for certification
Who should act as the payment certifier for subcontracts according to common practice mentioned in the text?
Head contractor and owner acting together
How can a role as a payment certifier be acquired according to the text?
"By specific inclusion in the client-architect agreement"
"What happens if an architect issues only a 'Certificate of Completion' without being the payment certifier throughout a project?"
"Not fulfilling statutory obligations"
What is NOT an exemption from opening a holdback account?
Architect.
What is one of the two important caveats to an architect’s lien rights mentioned in the text?
Architects or engineers engaged by each other do not have lien rights against each other.
What did British Columbia’s courts rule regarding architects' lien rights in relation to construction commencement?
Lien rights are contingent upon construction having commenced.
What does the Act define as an 'improvement' regarding architects' lien rights?
Any work done, alteration, or addition to land.
What is the purpose of a lien holdback according to the text?
To address incomplete work or deficiencies in construction.
Who is entitled to share pro rata in a fund when claiming under the same contractor or subcontractor?
All unpaid lien holders except workers.
What does 'services' include under the Act regarding lien rights?
'Services' encompass work provided by architects or engineers before construction begins.
What qualifies as a contractor under the Act in relation to lien rights?
'Contractor' is someone engaged by an owner concerning an improvement project.
What are 'subcontractors' defined as under the Act regarding lien rights?
'Subcontractors' refer to persons engaged by a contractor or another subcontractor for work on an improvement project.
What percentage must owners and contractors retain as holdbacks under the Act?
10
'Improvement' includes which of the following under the Act regarding lien rights?
Physical alterations made on land.
Why is it recommended to use the standard General Condition 3.7 of CCDC-2/08 according to the text?
To ensure proper review and certification based on subcontract terms
What is the architect's role when subcontracts involve work largely of an engineering nature?
To rely on the project's professional engineer(s)
Why are schedules of values required to be prepared by the 'parent' contractor according to the text?
To represent subcontract prices accurately
When is it possible to receive numerous applications for certification of completion by every subcontractor?
When there are tight deadlines and coincidental timelines
What is the specific lapse of time within which a payment certifier must respond to an application for certification of completion according to the text?
10 days
What happens if the payment certifier fails to deliver copies to relevant parties within 7 days of certifying a contract complete?
Exposure to liability
Why does the architect not undertake to be the payment certifier for subcontracts largely of an engineering nature?
'Parent' contractors are better suited for this role
What is one reason for separate certification of completion for some subcontractors mentioned in the text?
'Parent' contractor's coordination needs
Why does the text emphasize that schedules of values need to be accurately prepared by the 'parent' contractor?
'Parent' contractor's general conditions representation
What could be a consequence of overloading the payment certifier(s) with numerous applications for completion certifications?
Counter-productive outcomes and delays
What legal obligation does an architect have towards a subconsultant?
To pay the subconsultant monies due under the agreement
Under what circumstances is an architect not subject to builders lien holdback?
When the architect is a prime consultant engaged by a client
What ethical duty does an architect have even if paid by their client for the subconsultant's earnings?
To pay the corresponding monies to the subconsultant
What is emphasized as important for architects when reviewing construction for conformance?
Rendering decisions impartially
What is NOT a part of the standard references on contract administration mentioned in the text?
CCDC-25 A Guide to Payment Processing
What do architects rely on in order to stay informed about laws applicable to their profession according to the text?
Other knowledgeable professionals and qualified persons
What must architects do when reviewing construction for conformance, according to the text?
Render decisions impartially
What does the Practice Guideline recommend architects do in terms of obtaining legal advice?
Obtain legal advice and consult with professional liability insurers
What should architects do in light of changes to legislation according to the text?
Consult their own legal, accounting, or insurance representatives for professional advice
What is the ethical duty of an architect, even if they have been paid by their client for the subconsultant's earnings?
To pay the corresponding monies to the subconsultant.
What does an architect's legal obligation entail in relation to a subconsultant?
To fulfill the agreement by paying monies due under the agreement.
When reviewing construction for conformance, what must architects do according to the text?
Keep apprised of laws applicable to their profession and render decisions impartially.
What is emphasized for architects in terms of legal disputes between owners, contractors, and subcontractors?
Maintain impartiality and stay informed about laws applicable to their profession.
What is one of the responsibilities of architects regarding construction conformance reviews?
To render decisions impartially and keep apprised of laws applicable to the practice of their profession.
What should architects do in light of changes to legislation according to the text?
Obtain legal advice and consult with their professional liability insurers.
When do architects have an ethical duty to pay corresponding monies to a subconsultant?
Regardless of whether they have been paid by the client for the subconsultant.
'Payment certifier' architects may find themselves responsible for preparing what under the Act?
'Certificate of Completion' only.
What is NOT a reason for separate certification of completion for some subcontractors mentioned in the text?
To expedite payment processes by applying general completion certificates
What is an architect's ethical duty when they have been paid by their client on account of a subconsultant's earnings?
To pay the corresponding monies to the subconsultant.
What is the legal obligation of an architect towards a subconsultant?
To pay the subconsultant monies due under the agreement.
What role should architects undertake regarding legal disputes?
Stay neutral and not get involved in legal disputes.
What must architects do when reviewing construction for conformance, as per the text?
Render impartial decisions and consider applicable laws.
Why are architects encouraged to obtain legal advice, according to the text?
To avoid legal disputes and ensure compliance with laws.
'Completed' under the Act is defined as:
'Completed' based on substantial performance without defects.
What is one of the reminders given to architects regarding their decisions when reviewing construction for conformance?
They must keep apprised of laws applicable to their profession while reviewing conformance.
What is one significant aspect of architects' responsibility mentioned in the text?
They need to render impartial decisions while reviewing construction conformance.
When should architects rely on other knowledgeable professionals and qualified persons, according to the text?
When it benefits the project and helps ensure compliance.
Why are architects recommended to consult with their professional liability insurers?
To ensure they have adequate insurance coverage.
Learn about the role of the payment certifier in construction projects and the contract considerations involved. Understand how provincial legislation and agreements between parties interact in construction contracts.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
