Manitoba Builder's Lien

What is a Manitoba builder's lien?

In Manitoba, a builder's lien is a legal claim against an owner's interest in land that helps contractors, subcontractors, suppliers, and some professionals collect unpaid construction debts. Rights come from The Builders' Liens Act (Manitoba).

Manitoba uses builder's lien language, not "mechanic's lien." The Act sets its own holdback rules, notice steps, and registration deadlines. Miss a date and you can lose the claim while the debt still exists.

Who can claim a builder's lien?

Parties who improve land by furnishing work or materials may have lien rights, including:

• Contractors under a contract with the owner
• Subcontractors and suppliers downstream
• Workers and suppliers in some cases when payment chains break down
• Architects and engineers in qualifying circumstances

Your role in the contract chain affects which notices you must give and how long you have to register.

Statutory holdback (7.5%)

Manitoba requires a 7.5% statutory holdback on most construction contracts. Owners and contractors must retain holdback from progress payments. Holdback funds help satisfy valid lien claims.

Holdback is not your profit cushion. It is a compliance reserve tied to the project. Releasing holdback too early, or failing to retain it, creates liability when subs file claims.

Track holdback on every draw in your job costing and invoices.

Registration and deadlines

To preserve rights against the land, claimants generally register a builder's lien at the Manitoba Land Titles Office for the property's district.

Deadlines are strict and depend on:

• Whether you contracted directly with the owner
• When you last supplied work or materials
• Whether the owner registered a certificate of completion (which can shorten timelines)

Many subcontractors must also give notice of lien to the owner and general contractor within set periods after supplying work or materials. Do not skip notice because the GC " knows you are on site."

Calendar deadlines when you mobilize, not when collections fails.

Builder's lien vs contract claim

A builder's lien attaches to the property. A contract claim sues the party who hired you. You may pursue one or both, depending on timing and facts.

Strong records support either path:

• Approved quotes and change orders
• Clear invoices tied to draws
• Delivery tickets and site photos

Relationship to prompt payment

Manitoba's prompt payment and adjudication rules address how fast invoices must move through the contract chain. Lien rights and prompt payment are related but separate tools in a non-payment fight.

Practical tips for Manitoba contractors

Use Manitoba-specific forms and counsel. Off-the-shelf lien templates often fail if they skip local notice and registration rules.

Watch certificates of completion. They can shrink your registration window overnight.

Show holdback on pay apps. Transparency reduces owner disputes at release.

Register in the correct land titles district. Use the property's legal description carefully.

Disclaimer

This glossary entry is general information only, not legal advice. Manitoba lien deadlines and notice rules change and depend on project facts. Consult a Manitoba construction lawyer before giving notice or registering a lien.