How do I handle a dispute with my contractor under New Brunswick's Construction Remedies Act?

New Brunswick's Construction Remedies Act (SNB 2020, c.29) provides several dispute resolution mechanisms, but your first step should always be direct communication with your contractor to document the issue and attempt resolution.

The Construction Remedies Act, which replaced the old Mechanics' Lien Act in November 2021, establishes a framework for resolving payment disputes and construction defects. If you have a contract signed after November 1, 2021, you're covered under this new legislation — older contracts still fall under the previous Mechanics' Lien Act.

Start with Documentation and Direct Communication

Before pursuing formal remedies, gather all relevant documentation: your contract, change orders, photos of defective work, correspondence with the contractor, and proof of payments made. Send a written notice to your contractor clearly describing the problem, referencing specific contract terms, and requesting a timeline for resolution. Keep copies of all communications — email creates a clear paper trail.

Many disputes stem from miscommunication about scope, materials, or timelines. A detailed written complaint often prompts contractors to address issues they may not have fully understood. Give them a reasonable opportunity to remedy defects — typically 10-15 business days depending on the scope of corrections needed.

Formal Dispute Resolution Options

If direct communication fails, New Brunswick offers several escalating options. For disputes under $20,000, Small Claims Court provides an accessible venue with filing fees of just $50 for claims up to $3,000 or $100 for claims between $3,000-$20,000. Small Claims Court handles most residential renovation disputes efficiently, typically within 3-6 months.

For larger disputes exceeding $20,000, you'll need to file with the Court of King's Bench of New Brunswick (renamed from Court of Queen's Bench in September 2022). These cases involve higher filing fees and typically require legal representation, but they can address complex construction defects and significant financial damages.

Understanding Lien Rights and Holdback Requirements

The Construction Remedies Act also governs construction liens. If your contractor hasn't been paid by subcontractors or suppliers, those parties can place a lien on your property even if you've paid the general contractor in full. This is why the Act requires a 10% holdback on progress payments — you should retain 10% of each payment until 45 days after substantial completion.

Conversely, if you haven't paid your contractor for legitimate work completed, they can place a lien on your property. Liens must be filed within 45 days of substantial completion and can prevent you from selling or refinancing your home until resolved.

Additional Consumer Protections

New Brunswick's Consumer Product Warranty and Liability Act (CPWALA) provides implied warranties on materials and products installed during your renovation. If defective materials cause problems, you may have recourse against both the contractor and the supplier for repair, replacement, or refund.

For new home construction (not renovations), consider whether your builder enrolled in the Atlantic Home Warranty Program (AHWP) — this voluntary program provides coverage for construction defects up to $70,000 per home, though participation isn't mandatory in New Brunswick like Tarion coverage is in Ontario.

When to Involve Regulatory Bodies

If the dispute involves code violations or safety issues, contact your local building inspection department — either your municipality or Regional Service Commission (RSC) if you're in a rural area. For electrical, plumbing, or gas work that doesn't meet code, contact NB Department of Justice and Public Safety — Technical Inspection Services (TIS) at 1-888-659-3222.

If your contractor isn't properly licensed or insured, verify their credentials through TIS for trades licensing and WorkSafeNB for workplace safety coverage at 1-800-999-9775. Working with unlicensed contractors or those without proper insurance can complicate dispute resolution significantly.

Practical Next Steps

Document everything in writing, attempt direct resolution first, and don't withhold payment for work that was completed satisfactorily — this can actually strengthen the contractor's position if they file a lien. Consider consulting with a lawyer experienced in construction law if the dispute involves significant money or complex technical issues.

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