Builders' Lien Regulations

For the purposes of the definition "written notice of a lien" in subsection 1(1) of the Act, a written notice of a lien must be in a Written Notice of Lien in Form 1 of Schedule A.

For the purposes of paragraph 2(1)(b) of the Act,

A notice to a contractor under subsection 20(2) of the Act must be in a Notice to Contractor in Form 2 of Schedule A.

A notice to a lien claimant under subsection 21(4) of the Act must be in a Notice to Lien Claimant in Form 3 of Schedule A.

For the purposes of paragraph 29(2)(c) of the Act, the contract price must be $10,000,000 or more.

For the purposes of paragraph 30(2)(b) of the Act, the contract price must be $10,000,000 or more.

The amount prescribed under subsection 87(2) of the Act is $500,000.

A certificate of completion of a subcontract under subsection 44(1) of the Act must be in a Certificate of Completion of Subcontract in Form 9 of Schedule A.

A claim for lien under section 45 of the Act must be in a Claim for Lien in Form 10 of Schedule A.

A certificate of pending litigation under Part 7 of the Act must be in a Certificate of Pending Litigation in Form 11 of Schedule A.

A notice of cross-examination under

A withdrawal of written notice of a lien under subsection 55(2) of the Act must be in a Withdrawal of Written Notice of Lien in Form 14 of Schedule A.

A discharge of lien under section 55 or 56 of the Act must be in a Discharge of Lien in Form 15 of Schedule A.

A notice of postponement of lien under subsection 57(1) of the Act must be in a Notice of Postponement of Lien in Form 16 of Schedule A.

A bond posted as security under subsection 59(2) of the Act must be in a Financial Guarantee Bond (Security) in Form 17 of Schedule A.

A financial guarantee bond under subsection 79(11) of the Act must be in a Financial Guarantee Bond in Form 18 of Schedule A.

A labour and material payment bond under subsection 87(4) of the Act must be in a Labour and Material Payment Bond in Form 19 of Schedule A.

A performance bond under subsection 87(5) of the Act must be in a Performance Bond in Form 20 of Schedule A.

The Court may at any time make an order awarding carriage of the action to any person who has a perfected lien against the premises.

If more than one action is brought to enforce liens in respect of the same improvement, the Court may

If a person is in possession of an amount that may be subject to a trust under Part 2 of the Act, the person may apply for directions and the Court may give any direction or make any order that the Court considers appropriate in the circumstances.

Interlocutory steps, other than those provided for under the Act, shall not be taken without the consent of the Court on proof that the steps are necessary or would expedite the resolution of the issues in dispute.

These regulations come into force September 1, 2025. FORMS

FORM 1

(Section 1)

WRITTEN NOTICE OF LIEN

BUILDERS’ LIEN ACT

Name of person having a lien:

Address for service:

Name of payer:

Address:

Name of person to whom person having a lien supplied services or materials:

Address:

Time within which services or materials were supplied:

to

(date supply commenced) (date of most recent supply)

Short description of services or materials that have been supplied:

Description of premises sufficient for registration under the Land Titles Act:

Contract price or subcontract price: $

Amount claimed as owing in respect of services or materials that have been supplied: $

Date:

(signature of person having lien)

FORM 2

(Section 4)

NOTICE TO CONTRACTOR

BUILDERS’ LIEN ACT

TO: , contractor.

FROM: , a joint owner in common with

of the following premises:

(Description of premises sufficient for registration under the Land Titles Act)

The joint owner or owner in common assumes no responsibility for the improvements to the premises, to be made

by you under a contract between you and

(name of owner)

Date:

(joint owner or owner in common or agent)

FORM 3

(Section 5)

NOTICE TO LIEN CLAIMANT

BUILDERS’ LIEN ACT

TO: , lien claimant.

FROM: , landlord of the following premises:

(address of premises)

The landlord intends to

(use A or B, whichever is applicable)

A. enforce forefeiture against the lease of premises;

B. terminate lease of the premises

for non-payment of rent.

In order to protect your lien rights against the interest of the tenant, the amount of the unpaid rent as stated below must be paid to the landlord within 10 days of your receiving this notice. If you pay this amount, you may add it to your claim for lien.

Amount of unpaid rent: $

Payment of this amount may be made on: between the hours of

(days)

and at

(address for payment)

Date:

(landlord or agent)

FORM 4

(Paragraph 8(2)(a))

PROPOSAL TO PUBLISH

BUILDERS’ LIEN ACT

To the Registrar of Land Titles:

Name:

(Name of applicant)

Address:

Type of Proposal (select one only):

** for owner to publish a notice of non-payment of a holdback under paragraph 32(1)(a) of the Act and section 9 of the Builders’ Lien Regulations; (attach draft Notice of Non-Payment of Holdback in Form 5)

** for owner, contractor, or another person whose lien is subject to expiry, to publish a notice of termination under subsection 36(7) of the Act and under subsection 10(2) of the Builders’ Lien Regulations; (attach draft Notice of Termination in Form 7)

** for contractor to publish certificate of substantial performance under subsection 40(1) of the Act and under subsection 11(1) of the Builders’ Lien Regulations; (attach Certificate of Substantial Performance in Form 8)

** for person who applied under subsection 41(1) of the Act to publish copy of declaration of substantial performance under subsection 41(5) of the Act and under subsection 11(3). (attach copy of Declaration of Substantial Performance from the Court record)

Date:

(Applicant)

**Remember to attach the proposed publication and include the appropriate fee.

FORM 5

(Subsections 9(1) and (6))

NOTICE OF NON-PAYMENT OF HOLDBACK

BUILDERS’ LIEN ACT

Name:

(Name of owner, contractor or subcontractor)

Address:

Description of premises sufficient for registration under the Land Titles Act:

Name of contractor subcontractor

Address:

Address for service, if known

The owner contractor subcontractor will not pay the following amount required to be paid under sections 26 or 27 of the Builders’ Lien Act. (Use A or B, whichever is applicable)

A. The full amount of the hold back, being $ .

B. A portion of the amount of the holdback, being $ .

[If applicable] A copy of any notice of non-payment from the owner contractor subcontractor is enclosed.

The reasons for non-payment are as follows:

Date:

(Owner)

FORM 6

(Subsection 10(1))

DECLARATION OF LAST SUPPLY

BUILDERS’ LIEN ACT

,

(name of supplier)

a supplier of services or materials to an improvement being made to:

,

(Description of premises sufficient for registration under the Land Titles Act)

solemnly affirms or declares that:

1 The following services or materials were supplied:

(description of services or materials)

2 These services or materials were supplied under a contract (or subcontract) with

(name of payer)

dated the day of 20 .

3 The last supply of services or materials made by the supplier to the improvement under contract (or subcontract) was made on .

(date of last supply)

4 No further services or materials will be supplied under the contract (or subcontract). SWORN/AFFIRMED BEFORE ME at

(Community)

in the Northwest Territories on this day of

, 20 .

(Signature of Commissioner for Oaths)

A Commissioner for Oaths

(Commissioner’s stamp or printed name)

My Commission expires

Note: If this affidavit is sworn within the Northwest Territories, it must Territories or other person authorized under section 65 of the Evidence

If this affidavit is sworn outside the Northwest Territories, it must section 67 of the Evidence Act. ASSERMENTÉ(E)/AFFIRMÉ(E) DEVANT MOI à

(Collectivité)

aux Territoires du Nord-Ouest, le jour de

20 .

(Signature du commissaire à l’assermentation)

Le commissaire à l’assermentation des Territoires du Nord-Ouest

(Timbre ou nom du commissaire à l’assermentation en caractères imprimés)

Mon mandat expire le :

Note: Si l’affidavit est souscrit dans les Territoires du Nord-Ouest, il doit dans les Territoires du Nord-Ouest ou une autre personne autorisée

Si l’affidavit est souscrit à l’extérieur des Territoires du Nord-Ouest, personne autorisée en vertu de l’article 67 de la Loi sur la preuve.

FORM 7

(Subsection 10(2))

NOTICE OF TERMINATION

BUILDERS’ LIEN ACT

Name:

(Name of owner, contractor or other person whose lien is subject to expiry)

Description of premises sufficient for registration under the Land Titles Act:

(Use A or B, whichever is applicable)

A. Identification of premises for preservation of liens:

(if a lien attaches to the premises, description of premises sufficient for registration under the Land Titles Act)

B. Office to which claim for lien must be given to preserve lien:

(if the lien does not attach to the premises, the name and address of the person or body to whom the claim for lien must be given)

Termination of contract:

The contract with dated the

(name of contractor or other person)

of 20 , is terminated on the day of 20 .

Date:

(owner, contractor or other person)

FORM 8

(Section 11)

CERTIFICATE OF SUBSTANTIAL PERFORMANCE

BUILDERS’ LIEN ACT

(street address and community or location of premises)

This is to certify that the contract for the following improvement:

(short description of improvement)

to the above premises was substantially performed on .

(date substantially performed)

Date certificate signed: .

(payment certifier where there is one) (owner and contractor, where there is no payment certifier)

Name of owner:

Address for service:

Name of contractor:

Address for service:

Name of payment certifier (if applicable):

Address: (Use A or B, whichever is applicable)

A. Identification of premises for preservation of liens:

(if a lien attaches to the premises, description of premises sufficient for registration under the Land Titles Act)

B. Office to which claim for lien must be given to preserve lien:

(if the lien does not attach to the premises, the name and address of the person or body to whom the claim for lien must be given)

FORM 9

(Section 13)

CERTIFICATE OF COMPLETION OF SUBCONTRACT

BUILDERS’ LIEN ACT

This is to certify the completion of a subcontract for the supply of services or materials between

and

(name of subcontractor) (name of owner or contractor)

dated the day of , 20 .

The subcontract provided for the supply of the following services or materials:

to the following improvement:

(short description of the improvement)

of premises at

(Description of premises sufficient for registration under the Land Titles Act)

Date certificate signed: .

(payment certifier where there is one) (owner and contractor)

Name of owner:

Address for service:

Name of contractor:

Address for service:

Name of payment certifier (if applicable):

Address: (Use A or B, whichever is applicable)

A. Identification of premises for preservation of liens:

(if a lien attaches to the premises, description of premises

B. Office to which claim for lien must be given to preserve

(if the lien does not attach to the premises, the name and address

FORM 10

(Section 14)

CLAIM FOR LIEN

BUILDERS’ LIEN ACT

To the Registrar of Land Titles:

Name of lien claimant: (in the case of a claim on behalf of a worker by a workers’ trust find, the name of trustee)

Address for service:

Name of owner:

Address:

Name of person to whom lien claimant supplied services or materials:

Address:

Time within which services or materials were supplied:

from to

(date supply commenced) (date of most recent supply)

Short description of services or materials that have been supplied:

Contract price or subcontract price $

Amount claimed as owing in respect of services or materials that have been supplied: $

(Use A where the lien attaches to the premises; use B where the lien does not attach to the premises)

A. The lien claimant (if claimant is personal representative or assignee, this must be stated) claims a lien against the interest of every person identified above as an owner of the premises described in Schedule A to this claim for lien.

B. The lien claimant (if claimant is personal representative or assignee, this must be stated) claims a charge against the holdbacks required to be retained under the Act and any additional amount owed by a payer to the contractor or any subcontractor whose contract or subcontract was in whole or in part performed by the services or materials that have been supplied by the lien

(Description of premises sufficient for

Date:

AFFIDAVIT SUPPORTING

I, , of

Territories, ,

(Occupation) the claim is true (or the claim so far as it relates to me is true).

(Where affidavit is made by agent or assignee, a clause (or assignee) of the claimant and I have full knowledge of the

SWORN BEFORE ME at

(Community)

in the Northwest Territories on this day of

, 20 .

(Signature of Commissioner for Oaths)

A Commissioner for Oaths

(Commissioner’s stamp or printed name)

My Commission expires .

Note: If this affidavit is sworn within the Northwest Territories, it must Territories or other person authorized under section 65 of the Evidence

If this affidavit is sworn outside the Northwest Territories, it must section 67 of the Evidence Act.

FORM 11

(Section 15)

CERTIFICATE OF PENDING LITIGATION

BUILDERS’ LIEN ACT

Court File No.

IN THE SUPREME COURT OF THE NORTHWEST TERRITORIES

BETWEEN Plaintiff(s)

and

Defendant(s)

CERTIFICATE OF PENDING LITIGATION

To the Registrar of Land Titles:

I certify that an action has been commenced in the Supreme Court of the Northwest Territories under the Builders’ Lien Act between the above parties in respect of the premises described in Schedule A to this certificate, and relating to the claim(s) for lien bearing the following registration numbers:

Date:

(Registrar)

SCHEDULE A

Description of premises:

(The description of the premises must be the same as in the statement of claim, and must be sufficient for registration under the Land Titles Act.)

FORM 12

(Paragraph 16(a))

NOTICE OF CROSS-EXAMINATION

BUILDERS’ LIEN ACT

TO: , a person who is liable to be cross-examined

(name of lien claimant, agent or assignee of lien claimant or trustee of the workers’ trust fund)

on a claim for lien dated , with respect to the following premises:

(Description of premises sufficient for registration under the Land Titles Act)

YOU ARE REQUIRED TO ATTEND TO BE CROSS-EXAMINED ON OATH respecting the claim for lien on

, at , at the office of

(date) (time)

(name, address and telephone number of examiner)

and to bring with you all documents relating to the claim.

If you fail, without due cause, to attend your lien may be discharged or you may be liable for any legal costs arising from your non-attendance.

Date:

(name, address and telephone number of person or lawyer requiring cross-examination)

FORM 13

(Paragraph 16(b))

NOTICE OF CROSS-EXAMINATION

BUILDERS’ LIEN ACT

TO:

(a person named in the claim for lien as having an interest in the premises, the contractor or the payer of the lien claimant or the lawyer of any of the foregoing)

This is notice that , a person who is liable to be cross-examined

(name of lien claimant, agent or assignee of lien claimant or trustee of the workers’ trust fund)

on the claim for lien in respect of an improvement to the following premises:

(Description of premises sufficient for registration under the Land Titles Act)

will be cross-examined regarding that claim on at , at the office of

(date) (time)

(name, address and telephone number of examiner)

You are entitled to be present at the cross-examination either personally or by a lawyer and to participate in the cross-examination. Only one cross-examination may be held in respect of this claim for lien.

Date:

(name, address and telephone number of person or lawyer requiring cross-examination)

FORM 14

(Section 17)

WITHDRAWAL OF WRITTEN NOTICE OF LIEN

BUILDERS’ LIEN ACT

Name of person having lien:

Address for service:

Description of premises sufficient for registration under the Land Titles Act:

The person having a lien withdraws the written notice of lien dated the day of 20 ,

in respect of an improvement to the premises owned by .

Date:

(person having a lien)

FORM 15

(Section 18)

DISCHARGE OF LIEN

BUILDERS’ LIEN ACT

To the Registrar of Land Titles:

I, discharge the claim of lien

(daybook no.)*

(lien claimant) (date)

(witness) (date)

* Daybook no. is the number or symbol assigned by the Registrar under subparagraph 54(a)(iii) of the Land Titles Act.

FORM 16

(Section 19)

NOTICE OF POSTPONEMENT OF LIEN

BUILDERS’ LIEN ACT

To the Registrar of Land Titles:

Name of lien claimant:

Address of lien claimant:

The lien claimant discharges the lien claimed in the claim for lien dated the day of ,

20 , in respect of an improvement to the premises owned by

registered as Instrument No. to Instrument No. , in respect of lands described

in Schedule A upon the following terms and conditions:

Date:

(witness) (signature of lien claimant)

NOTE: Where the lien claimant is not a corporation, the postponement must be verified by the affidavit of a subscribing witness.

SCHEDULE

(Where the lien attaches to the premises, provide a description of the premises sufficient for registration under the Land Titles Act. Where the lien does not attach to the premises, provide the street address, or, where there is none, the location of the premises.)

FORM 17

(Section 20)

FINANCIAL GUARANTEE BOND (SECURITY)

BUILDERS’ LIEN ACT

Bond No. Amount $

The surety of this bond is , an insurer licensed under the Insurance

Act to write surety and fidelity insurance.

The principal of this bond is .

The obligee of this bond is the Accountant of the Supreme Court of the Northwest Territories.

WHEREAS has registered (or where the lien does not attach to the

premises, has preserved the lien by giving to the appropriate office) a claim for lien with respect to an improvement to the premises described in Schedule A to this bond.

AND WHEREAS and others may prove liens with respect to the

improvement to the premises.

AND WHEREAS this bond is being posted pursuant to section 59 or 60 of the Builders’ Lien Act.

THEREFORE, subject to the conditions contained in this bond, the surety and the principal bind themselves, their heirs, executors, successors and assigns, jointly and severally, to the obligee as follows:

1. The principal shall on or before the date specified in the judgment, order or report of the court, in any action to enforce lien claims arising from the improvement, pay to the obligee the amounts for lien(s) and costs as is directed by the court, unless in the meantime an appeal has been taken from the judgment, order or report in which case payment is not required until the final disposition of the appeal.

2. The surety, in default of payment by the principal, shall pay to the obligee within such further time as is specified by the court, the amount of any deficiency in the payment by the principal but the surety is not liable to pay more than a maximum amount of $ _________________ . The surety shall make the payment upon the written demand of the obligee without the right to question the merit of the demand and despite any objection by the principal. This bond is subject to the following conditions:

1. The total amount of this bond shall be reduced by and pursuant to an order, report or judgment of the court.

2. The surety shall be entitled to an assignment of the from the proceeds of this bond, to the extent of the

Signed and sealed by the principal and the surety on the

SIGNED AND SEALED in the presence of

NOTE: If the principal is not a corporation, the principal’s subscribing witness.

FORM 18

(Section 21)

FINANCIAL GUARANTEE BOND

BUILDERS’ LIEN ACT

The surety of this bond is , an insurer licensed under the

Insurance Act to write surety and fidelity insurance.

The principal of this bond is a mortgagee of the interest of the

owner in the premises described in Schedule A to this bond.

The obligees of this bond are all persons having liens whose liens are entitled to priority over the interest of the principal under subsection 79(6) of the Act.

WHEREAS it is the intention of the principal to sell the interest of the owner under a power of sale.

THEREFORE, subject to the conditions contained in this bond, the surety and the principal bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally to the obligees as follows:

1. The principal shall, on or before the date set out in the judgment or report for payment, pay to each obligee who has proved a lien the amount determined by the court to be owing to that obligee under subsection 79(6) of the Act by the principal as a mortgagee, unless in the meantime an appeal has been taken from the judgment or report in which case payment is not required until the final disposition of all appeals.

2. The surety, in default of payment by the principal, shall pay to each obligee the amount owing to him or her by the principal, but the surety is not liable to pay more than a total maximum amount of $ _________ (an amount equal to 20 per cent of the amount stated to be the contract price in the affidavit attached as Schedule B to this bond).

The bond is subject to the following conditions:

(a) An obligee shall not make a claim against the surety unless the principal is in default of the principal’s obligations under this bond.

(b) An obligee shall give the surety thirty days written notice of the claim prior to commencing an action against the surety.

(c) The surety is released from its obligation to an obligee unless the obligee has given written notice of the claim to the surety within one year after the default by the principal. (d) The total amount of this bond is reduced by and to the extent of any payment made under the bond.

(e) The surety is entitled to an assignment of the rights of an obligee against the principal to the extent of the payment made by the surety.

Signed and sealed by the principal and the surety on the day of , 20 .

SIGNED AND SEALED in the presence of (seal)

(principal)

(seal)

(surety)

NOTE: Where the principal is not a corporation, the principal’s signature must be verified by an affidavit of a subscribing witness.

SCHEDULE A

FINANCIAL GUARANTEE BOND

(provide a description of the premises sufficient for registration under the Land Titles Act )

FINANCIAL GUARANTEE BOND

AFFIDAVIT OF GOOD FAITH BY MORTGAGEE

I, make oath and say (or affirm) as follows:

1. I am a mortgagee of the interest of described in Schedule A to

(name of owner)

the attached bond.

2. Under the terms of the mortgage I am entitled to exercise a power of sale with respect to that interest.

3. It is my intention to exercise that power of sale, even though there are claims for lien registered against the interest of the owner under the Builders’ Lien Act that may have priority to the mortgage.

4. I have inquired of the contractor and the owner with respect to the contract price of the contract to which that improvement relates, and to the best of my information and belief the amount of the contract price (including the price of all services and materials supplied under all amendments to that contract) is

$

5. The attached bond has been obtained by me in good faith, without any intention of depriving any lien claimant of their rights under the Builders’ Lien Act.

SWORN BEFORE ME at

)

(Community) )

in the Northwest Territories on this day of ) (Supplier)

, 20 . )

(Signature of Commissioner for Oaths)

A Commissioner for Oaths

(Commissioner’s stamp or printed name)

My Commission expires .

Note: If this affidavit is sworn within the Northwest Territories, it must be sworn before a commissioner for taking oaths within the Northwest Territories or other person authorized under section 65 of the Evidence Act.

If this affidavit is sworn outside the Northwest Territories, it must sworn before a notary public or other person authorized under section 67 of the Evidence Act.

FORM 19

(Section 22)

LABOUR AND MATERIAL PAYMENT BOND

BUILDERS’ LIEN ACT

Bond No. Amount $

(name of contractor *)

as a principal, hereinafter [collectively] called the "Contractor", and

(name of surety company **)

a corporation created and existing under the laws of

(place of incorporation)

as a surety, and duly authorized to transact the business of Suretyship in the Northwest Territories and hereinafter

called the "Surety", are held and firmly bound unto

(name of owner ***)

as obligee, hereinafter called the "Owner", in the amount of $ herein after called

(Bond Amount in figures)

the "Bond Amount", for the payment of which sum the Contractor and the Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally in accordance with the provisions of this Bond (the "Obligation").

WHEREAS the Contractor has entered into a written contract with the Owner dated the day of

in the year 20 for

(title or description of the contract)

(the "Original Contract") and, for the purpose of specifying the conditions of the Obligation, this contract together with amendments made in accordance with its terms are by reference made part hereof and are hereinafter referred to collectively as the "Contract";

NOW THEREFORE the condition of this Obligation is such that if the Contractor shall make payment to all Claimants as hereinafter defined in accordance with the terms of their respective subcontracts or sub-subcontracts for all labour and material used or reasonably required for use in the performance of the Contract then this Obligation shall be null and void, otherwise it shall remain in full force and effect subject to the following conditions:

1. Every corporate or natural person, including a union or workers trust fund on behalf of unionized workers, having a direct contract with the Contractor (hereinafter called a "Subcontractor") or with any Subcontractor (hereinafter called a "Sub-subcontractor") for labour, material or both used or reasonably required for use in the performance of the Contract is a "Claimant" under this Bond. The entitlement under this Bond of any Sub-subcontractor, however, is limited to such amounts as the Contractor would have been obligated to pay to the Sub-subcontractor under the Builders’ Lien Act (the "Act"). The entitlement under this Bond of any union or workers trust fund is limited to wages and monetary supplementary benefits, as defined in the Act. The terms "labour" and "material" include that part of water, gas, power, light, heat, oil, gasoline, telephone or digital service or rental equipment directly applicable to the Contract provided that a Claimant who rents equipment to the Contractor or a Subcontractor to be used in the performance of the Contract under a contract which provides that all or any part of the rent is to be applied towards the purchase price thereof shall only be a Claimant to the extent of the prevailing industrial rental value of such equipment for the period during which the equipment was used in the performance of the Contract. The prevailing industrial rental value of equipment shall be determined, insofar as it is practical to do so, by the prevailing rates in the equipment marketplace in which the work is taking place.

2. The Owner is not obligated to do or take any action or proceeding against the Surety on behalf of the Claimant to enforce the bond.

3. Every Claimant who has not been paid for labour, material or both used or reasonably required for use in the performance of the Contract, after the date on which payment was due and payable under the terms of its subcontract or sub-subcontract may demand payment under this Bond by giving the Surety, with a copy to the Contractor and the Owner, a written Notice of Claim, substantially in the form prescribed in Schedule A for a Subcontractor or Schedule B for a Sub- subcontractor, hereinafter called the "Notice of Claim".

4. Where the Surety includes two or more companies a Notice of Claim may be delivered to the first listed Surety on behalf of all Sureties. The first listed Surety is hereby authorized to respond to a Notice of Claim on behalf of the Surety, and a Claimant is not required to make separate Notices of Claim to each Surety and is entitled to correspond with the first listed Surety on behalf of all Sureties.

5. It is a condition precedent to the liability of the Surety under this Bond that a Claimant shall have submitted a Notice of Claim

(a) in respect of any amount required to be held back from the Claimant by the Contractor, or by a Subcontractor, under either the terms of the Claimant’s contract with the Contractor or Subcontractor or under the Act, whichever is the greater, hereinafter and for the purposes of this Bond called the "Holdback", within one hundred and twenty (120) calendar days after the Claimant should have been paid in full under its contract with the Contractor or with a Subcontractor; and

(b) in respect of any amount other than for Holdback within one hundred and twenty (120) calendar days after the date on which the Claimant last performed labour or provided materials for which the Notice of Claim was given.

6. For each Notice of Claim provided by a Subcontractor:

(a) No later than three (3) business days after receipt by the Surety of a Notice of Claim the Surety shall acknowledge receipt of the Notice of Claim, substantially in the form prescribed at Schedule C, and request from the Claimant any information and documentation the Surety requires to determine the Claimant’s entitlement under this Bond (hereinafter called the "Information"); and

(b) No later than the earlier of: (a) ten (10) business days after receipt by the Surety of the Information, (b) twenty-five (25) business days after receipt by the Surety of a Notice of Claim, or (c) such longer time as agreed by the Surety and the Subcontractor, the Surety shall provide a position in response to the Notice of Claim, substantially in the form prescribed at Schedule D, hereinafter called the "Surety’s Position".

7. For each Notice of Claim provided by a Sub-subcontractor:

(a) No later than three (3) business days after receipt by the Surety of a Notice of Claim the Surety shall acknowledge receipt of the Notice of Claim, substantially in the form prescribed at Schedule C, and request from the Claimant any information and documentation the Surety requires to determine the Claimant’s entitlement under this Bond (hereinafter called the "Information"); and

(b) No later than the earlier of: (a) fifteen (15) business days after receipt by the Surety of the Information, (b) thirty-five (35) business days after receipt by the Surety of a Notice of Claim, or (c) such longer time as agreed by the Surety and the Sub-subcontractor, the Surety shall provide a position in response to the Notice of Claim, substantially in the form prescribed at Schedule D, hereinafter called the "Surety’s Position".

8. No later than ten (10) business days after the Surety’s Position being provided to any Claimant the Surety shall pay such amounts included in the Notice of Claim that are undisputed by the Surety, except to the extent that the Surety makes an application to the Court with respect to such amounts in accordance with section 10 below. This payment of undisputed amounts shall be without prejudice to the Surety’s position regarding any disputed portions of a Notice of Claim.

9. The Surety shall not in any circumstances be liable for a greater sum than the Bond Amount.

10. The Bond Amount shall be reduced by and to the extent of any payment or payments made under this Bond. If the aggregate of all Notices of Claim exceed, or the aggregate of amounts for which Notices of Claim might be given are believed by the Surety to exceed, the Bond Amount then the Surety may apply to the Court for direction in the interest of all Claimants.

11. Upon payment to a Claimant under this Bond in respect of any indebtedness of the Contractor or Subcontractor to the Claimant, the Surety shall be subrogated to all of the rights of the Claimant in respect of any and all claims, causes of action and rights to recovery which the Claimant may have against any person, firm or corporation because of or in connection with or arising out of such indebtedness, and the Claimant undertakes to extend to the Surety or the Surety’s designee any warranties and/or guarantees under the Contract in respect of all labour and materials for which the Claimant has been paid.

12. As a condition precedent, any suit or action under this Bond must be commenced within one (1) year after the date on which the Contractor last performed work on the Contract, including work performed under any warranty or guarantees provided in the Contract.

13. The parties to this Bond and a Claimant by providing a Notice of Claim agree that any suit or action is to be made to a court of competent jurisdiction in the Northwest Territories and agree to submit to the jurisdiction of such court notwithstanding any terms to the contrary in the Contract.

14. The rights and obligations of the Owner, the Contractor, and the Surety under this Bond are in addition to their respective rights and obligations at common law and in equity.

15. This Bond shall be governed by the laws of the the Northwest Territories.

16. All notices ("Notices") under this Bond shall be delivered by registered mail, facsimile, or electronic mail at the addresses set out below, subject to any change of address in accordance with this section. Any Notice given by facsimile or electronic mail shall be deemed to have been received on the next business day or, if later, on the date actually received if the person to whom the Notice was given establishes that he or she did not, acting in good faith, receive the Notice until that later date. Any Notice given by registered mail shall be deemed to have been received five (5) days after the date on which it was mailed, exclusive of Saturdays and holidays or, if later, on the date actually received if the person to whom the Notice was mailed establishes that he or she did not, acting in good faith, receive the Notice until that later date. The address for the Owner or the Contractor may be changed by giving Notice to the other parties setting out the new address in accordance with this section.

Surety Owner

(Surety corporate name) (Owner proper name)

(Address) (Address)

(Fax) (Fax)

(Email) (Email) Contractor

(Contractor proper name)

(Address)

(Fax)

(Email)

IN WITNESS WHEREOF, the Contractor and the Surety have Signed and Sealed this Bond this day of

in the year 20 .

[Contractor proper name] Witnessed by:

By:

Name: Name of Witness:

Title: Address of Witness:

I have the authority to bind the corporation.

[Surety corporate name]

By:

Name:

Attorney-in-fact

* If there are two or more companies in partnership or joint venture, jointly and severally bound, insert the name of each partner or joint venture party, and insert the word "collectively" after the word "hereinafter" in the first line.

** if there are two or more surety companies, jointly and severally bound, insert the "[name of the surety company], a corporation created and existing under the laws of [place of incorporation]," for each surety, followed by "each as a surety and each duly authorized to transact the business of suretyship in the Northwest Territories and hereinafter collectively called the "Surety".

*** Insert the government, as applicable, or such other party deemed to be the owner under the Act, and entering into the public contract with the contractor. (Subcontractor)

Date:

Surety Name:

Surety Address:

Surety Address:

Surety’s Email:

Attention:

RE:

Bond No.:

Contractor

Owner:

Contract:

Dear _______________,

We have a subcontract with the Contractor for

(our "Subcontract") related to the Contract between the Owner

in

We have given notice to the Contractor as required under under the Subcontract and remains unpaid contrary to the

For Holdback amounts we hereby demand payment of $ (Sous-traitant)

Date :

Nom de la caution :

Adresse de la caution :

Adresse de la caution :

Adresse électronique/de courriel de la caution :

À l’attention de :

Objet :

No cautionnement :

Entrepreneur :

Propriétaire :

Contrat :

Madame/Monsieur,

Nous avons un contrat de sous-traitance avec l’entrepreneur

(notre «contrat de sous-traitance») en lien avec le contrat entre

à

Conformément à notre contrat de sous-traitance, nous avons montant est dû et exigible en vertu du contrat de sous-traitance du contrat de sous-traitance. For amounts other than Holdback we hereby demand payment of $ under the

captioned Bond for all labour and material used or reasonably required for use in the performance of the Contract.

To assist in your evaluation of this Notice of Claim we invite you to contact our representative as follows:

Name:

Title:

Company address:

Phone (mobile):

Email address:

We also enclose the following documents supporting our Notice of Claim:

[The following is a suggested list of documents to be considered for delivery to the Surety. Please check off the documents (if any) that you are providing with this Notice of Claim.]

Copy of full, executed Subcontract or Purchase Order or Collective Bargaining Agreement, including approved changes and pending changes relevant to this Notice of Claim

Copy of the prime contract between the Contractor and the Owner

Copy of original schedule and latest approved schedule for the Subcontract

Copies of all invoices submitted to the Contractor

Copies of all payments from the Contractor to the Claimant

Summary reconciliation of all invoices issued under the Subcontract

Summary reconciliation of all payments received under the Subcontract

Confirmation from the Owner or Contractor that the Claimant has completed all of its work including rectification of all identified deficiencies and the delivery of all required close-out documents

Copy of any notice or correspondence to and from the Contractor relevant to this Notice of Claim

Confirmation of the last day the Claimant performed work pursuant to the Subcontract including proof thereof

Copy of any claim for lien, legal proceeding or other documents to enforce your entitlement to payment

Copy of the executed Labour and Material Payment Bond under which this Notice of Claim is being made [additional documents]

We look forward to receiving your acknowledgment of this receipt and your request for any additional documentation under the Bond.

Yours truly,

(full corporate title)

By:

[Name] [Title] [Phone] [Email address]

CC: [Contractor] [documents supplémentaires]

Nous espérions recevoir votre accusé de réception du présent ouvrables de sa réception, ainsi que votre demande en vue supplémentaires dont vous avez besoin pour vous acquitter

Veuillez agréer, Madame/Monsieur, l’expression de mes sentiments

(Dénomination sociale complète)

Par :

[Nom] [Titre] [Téléphone] [Adresse de courriel]

C.c. : [Entrepreneur] (Sub-subcontractor)

Date:

Surety Name:

Surety Address:

Surety Address:

Surety’s Email:

Attention:

RE:

Bond No.:

Contractor:

Subcontractor:

Owner:

Contract:

Dear _________________,

We have a written subcontract with

(name of the

(title or description of the Sub-subcontract)

between the Owner and the Contractor for

.

(community, territory or province) (Sous-sous-traitant)

Date:

Nom de la caution :

Adresse de la caution :

Adresse de la caution :

Adresse électronique/de courriel de la caution :

À l’attention de :

Objet :

No cautionnement :

Entrepreneur :

Sous-traitant :

Propriétaire :

Contrat :

Madame/Monsieur,

Nous avons un contrat de sous-traitance écrit avec

(titre ou description du contrat de sous-sous-traitance)

avec le contrat entre le propriétaire et l’entrepreneur pour

(collectivité, territoire/province) We have given notice under our Sub-subcontract to the Subcontractor that an amount is due and payable under the Sub-subcontract and remains unpaid contrary to the terms of the Sub-subcontract. A copy of that notice has also been provided to the Contractor.

We hereby demand payment of $ under the captioned Bond.

To assist in your evaluation of this Notice of Claim we invite you to contact our representative as follows:

Name:

Title:

Company address:

Phone (mobile):

Email address:

We also enclose the following documents supporting our Notice of Claim:

[The following is a suggested list of documents to be considered for delivery to the Surety. Please check off the documents (if any) that you are providing with this Notice of Claim.]

Copy of full, executed Subcontract Purchase Order or Collective Bargaining Agreement, including approved changes and pending changes relevant to this Notice of Claim

Copy of the prime contract between the Contractor and the Owner

Copy of original schedule and latest approved schedule for the Subcontract

Copies of all invoices submitted to the Contractor

Copies of all payments from the Contractor to the Claimant

Summary reconciliation of all invoices issued under the Subcontract

Summary reconciliation of all payments received under the Subcontract

Confirmation from the Owner or Contractor or Subcontractor that the Claimant has completed all of its work including rectification of all identified deficiencies and the delivery of all required close-out documents

Copy of any notice or correspondence to and from the Contractor relevant to this Notice of Claim

Confirmation of the last day the Claimant performed work pursuant to the Subcontract including proof thereof Copy of any claim for lien, legal proceeding or other

Copy of the executed Labour and Material Payment

[additional documents]

We look forward to receiving your acknowledgment of this receipt and your request for any additional documentation under the Bond.

Yours truly,

(full corporate title)

By:

[Name] [Title] [Phone] [Email address]

CC: [Contractor] Acknowledgement of Notice of Claim

Date:

Name/corporate title of the Subcontractor or Sub-subcontractor:

Address:

Address:

Email address (if provided in Notice of Claim):

Attention:

RE:

Bond No.:

Contractor

Owner:

Contract:

Dear _________________,

We acknowledge receipt on of your Notice of Claim dated

(date of receipt)

Subject to a full reservation of all of our rights pursuant to the Bond and at law and to assist us in evaluating your Notice of Claim we ask that you provide the following information and/or documentation promptly:

This request for information is not an acknowledgement of the validity of your claim. We look forward to hearing from you.

Yours truly,

(full corporate title) By:

[Name] [Title] [Phone] [Email address]

CC: [Contractor] Par :

[Nom] [Titre] [Téléphone] [Adresse de courriel]

C.c. : [Entrepreneur et sous-traitant]

SCHEDULE

Date:

Name/corporate title of the Subcontractor or Sub-subcontractor:

Address:

Address:

E-mail address (if provided in the Notice of Claim):

Attention:

RE:

Bond No.:

Contractor

Owner:

Contract:

Dear _________________,

Having reviewed the information and documentation provided follows:

A - Disputed Amount(s)

The following amounts in your Claim are disputed at the present

With respect to any disputed amounts we invite you to contact documentation in support of your Claim. B - Undisputed Amount(s)

The following amounts in your Claim are not disputed at the any amount should an ultimate determination find that amounts Contractor:

We continue to reserve all of our rights pursuant to the Bond

If you have any questions or concerns, please do not hesitate

Yours truly,

(full corporate title)

By:

[Name] [Title] [Phone] [Email address]

CC: [Contractor]

FORM 20

(Section 23)

PERFORMANCE BOND

BUILDERS’ LIEN ACT

No. (the "Bond") Bond Amount $

(name of contractor*)

as a principal, hereinafter [collectively] called the "Contractor", and

(name of surety company")

a corporation created and existing under the laws of

(place of incorporation)

as a surety, and duly authorized to transact the business of Suretyship in the Northwest Territories and hereinafter

called the "Surety", are held and firmly bound unto

(name of owner***)

as obligee, hereinafter called the "Owner", in the amount of $ hereinafter called the

(Bond Amount in figures)

for the payment of which sum the Contractor and the Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally in accordance with the provisions of this Bond (the "Obligation").

WHEREAS the Contractor has entered into a written contract with the Owner dated the day of

(month)

in the year for

(title or description of contract)

(the "Original Contract") and, for the purpose of specifying the conditions of the Obligation, this contract together with amendments made in accordance with its terms are by reference made part hereof and are hereinafter referred to collectively as the "Contract"; NOW THEREFORE the condition of this Obligation is such that if the Contractor shall promptly and faithfully perform the Contract then this Obligation shall be null and void; otherwise it shall remain in full force and effect, subject to the following terms and conditions:

1. Written Notice

1.1 The Owner may make a written demand on the Surety in accordance with this Bond, by giving notice to the Surety substantially in the form attached as Schedule A (the "Notice"). Except for a Pre-Notice Meeting in accordance with section 2.1, the Surety shall have no obligation under this Bond until it receives a Notice.

1.2 Where the Surety includes two or more companies, the Notice may be delivered to the first listed Surety on behalf of all Sureties. The first listed Surety is hereby authorized to respond to the Notice on behalf of the Sureties, and the Owner is not required to give separate Notice to each Surety and is entitled to correspond with the first listed Surety on behalf of all Sureties.

2. Pre-Notice Meeting

2.1 The Owner may, at its sole discretion and acting reasonably, request a pre-Notice conference by notifying the Surety and the Contractor in writing that it is considering declaring the Contractor to be in default under the Contract (the "Pre-Notice Meeting"). This notice and request for a Pre-Notice Meeting by the Owner does not constitute a Notice under this Bond, nor under the Contract, nor is it a precondition to the giving of a Notice. Upon receipt of such request the Surety shall propose a face-to-face meeting, a telephone conference call or a meeting by any other form of electronic media between the Contractor, the Owner and the Surety to take place at a time and place mutually convenient for all parties within seven (7) business days (or such longer time as agreed by all parties) after the Surety’s receipt of the Owner’s request for a Pre-Notice Meeting in accordance with this section. The Owner, the Contractor and the Surety shall make reasonable efforts to arrange and attend the Pre-Notice Meeting. In the event that the Owner delivers a Notice prior to the Pre-Notice Meeting, then the Pre-Notice is deemed to be retracted.

2.2 The purpose of a Pre-Notice Meeting is to allow the Owner, prior to exercising its other rights under this Bond, to express any concerns about the Contractor’s performance pursuant to the Contract and to allow the Contractor to respond to such concerns. The participation of the parties in one or more Pre-Notice Meetings shall be without prejudice to their respective rights and obligations under the Contract, this Bond or applicable law, and neither the participation by any party in any Pre-Notice Meeting, nor any statement or position taken or information provided by any party during any Pre-Notice Meeting, may be relied on by any other party as a waiver or compromise of the rights or obligations of the Owner, the Surety or the Contractor under the Contract, this Bond or applicable law; including, but not limited to the Owner’s right to declare the Contractor in default under the Contract and give Notice under this Bond.

3. Surety’s Investigation and Response

3.1 Upon receipt of a Notice from the Owner, the Surety shall promptly initiate an investigation of the Notice (the "Investigation"), using its best efforts, to determine if the Conditions Precedent have been satisfied and to determine its liability, if any, under the Bond. 3.2 Within the four (4) business days following receipt of the Notice, the Surety shall provide the Owner with an acknowledgement, substantially in the form set out as Schedule B (the "Acknowledgement"), identifying the date on which the Notice was received and requesting from the Owner the information and documentation (the "Information") the Surety requires to continue the Investigation and, if necessary, request access to personnel who are knowledgeable about the circumstances of the Notice and to the Contract work site(s) where the work is being performed. Upon receipt of the Surety’s Acknowledgement, the Owner shall promptly, and in accordance with terms of the Contract, provide the Surety with the requested Information and access to personnel and the work site(s) within its possession or control.

3.3 The Surety shall within a reasonable time conduct the Investigation, but in any event no later than twenty (20) business days after receipt by the Surety of a Notice (or such longer period as may be agreed between the Surety and Owner), the Surety shall provide the Owner with its written response to the Notice, substantially in the form set out at Schedule C (the "Surety’s Position"), advising either that:

a) the Surety accepts liability under the Bond and proposes to satisfy its Obligation by performing one of the options set out in section 6.1;

b) the Surety does not accept liability, providing its specific reasons; or

c) the Surety is unable to determine whether or not one or more of the Conditions Precedent has been satisfied and, in the Surety’s sole discretion, the Surety may propose a process for collaborating with the Owner in the advancement of the completion of the work so as to attempt to mitigate the Owner’s cost to complete the Contract.

3.4 The Surety shall also, if requested by the Owner to do so, meet with the Owner to discuss the status of the Investigation within five days following receipt of the request. This meeting may take place via a face-to-face meeting, a telephone conference call or a meeting by any other form of electronic media as may be mutually agreed to by the Owner and Surety.

4. Necessary Interim Work

4.1 Prior to and during the Investigation, if the Owner must take action which is necessary to:

a) ensure public or worker safety,

b) preserve or protect the work under the Contract from deterioration or damage, or

c) comply with applicable law,

(the "Necessary Interim Work")

the Owner may, acting with due diligence and provided written notice is subsequently provided to the Surety within three (3) Business Days of the commencement of such Necessary Item Work, undertake such Necessary Interim Work provided that: i. Owner shall allow the Surety and/or its consultant(s) reasonable access to the Contract work site(s) during the course of the Necessary Interim Work for the purpose of monitoring the progress of the Necessary Interim Work;

ii. any such Necessary Interim Work shall be undertaken without prejudice to the rights of the Owner, the Contractor or the Surety under the Contract, this Bond or applicable law; and

iii. the reasonable costs incurred by the Owner in undertaking such Necessary Interim Work (to the extent they are not deducted in the calculation of the Balance of Contract Price in section 9.1) shall be reimbursed by the Surety, subject to the Surety’s liability being subsequently established and subject to such expenses being covered by this Bond. Any payments made by the Surety in respect of the Necessary Interim Work shall reduce the Bond Amount by the amount of any such payments.

4.2 Nothing in this section is intended to limit the ability of an Owner to take whatever steps are reasonably necessary in the public interest.

4.3 Subject to the foregoing provisions in section 4.1, the Surety shall not raise the mere fact that the Necessary Interim Work proceeded as a defence to any claim by the Owner hereunder.

5. Post-Notice Conference

5.1 Upon receipt of a Notice, the Surety shall propose a face-to-face meeting, telephone conference call or a meeting by any other form of electronic media (a "Post-Notice Conference") with the Owner at a mutually convenient time and place within five (5) business days (or such longer period as may be agreed between the Surety and Owner). The Contractor may participate in a Post-Notice Conference at the invitation of the Surety.

5.2 The purpose of the Post-Notice Conference shall be to determine what actions or work, if any, the Owner believes must be done while the Surety is conducting the Investigation in order to effectively mitigate the costs for which the Owner is seeking recovery under this Bond (the "Mitigation Work"). Mitigation Work may be performed after Necessary interim Work and throughout the period of investigation by the Surety.

5.3 Provided the Owner provides reasonable evidence to the Surety that Mitigation Work is necessary during the Investigation and that the anticipated costs are reasonable, the Owner may proceed with the Mitigation Work subject to the following conditions:

a) Owner shall pay the reasonable costs of the Mitigation work;

b) Owner shall keep separate records of all amounts related to the Mitigation Work for which it intends to seek recovery under this Bond, including amounts to be set off against the Balance of Contract Price;

c) Owner shall allow the Surety or its consultant(s) reasonable access to the Contract work site(s) during the course of the Mitigation Work for the purpose of monitoring the progress of the Mitigation Work; and

d) the Mitigation Work shall be without prejudice to the rights or obligations of the Owner, Contractor or Surety under the Contract, this Bond or applicable law. 5.4 If the Surety objects to any part of the Mitigation Work, including without limitation the Owner’s proposed Mitigation Work contractor(s), scope of work, cost or method of work, it shall immediately advise the Owner in writing of its objections and the reasons therefor. The Owner may still proceed with the Mitigation Work and the Surety’s objections will be addressed through negotiation with the Owner or at the trial of any action brought pursuant to this Bond.

5.5 The reasonable costs incurred by the Owner in undertaking the Mitigation Work shall be reimbursed by the Surety, subject to the Surety’s liability being subsequently established. Any payments made by the Surety in respect of the Mitigation Work shall form part of its Obligation under this Bond and shall reduce the Bond Amount by the amount of any such payments.

5.6 For greater clarity, any Necessary Interim Work being performed by the Owner pursuant to section 4 may continue to be performed pending an agreement, if any, as to the Mitigation Work.

5.7 Subject to the foregoing provisions in this section 5, the Surety shall not raise the mere fact that the Mitigation Work proceeded as a defence to any claim by the Owner hereunder.

6. Surety’s Options

6.1 If the Surety has accepted liability pursuant to this Bond the Surety shall promptly select and commence one of the following options:

a) remedy the default,

b) complete the Contract in accordance with its terms and conditions;

c) obtain a bid or bids for submission to the Owner for completing the Contract in accordance with its terms and conditions and, upon determination by the Owner and the Surety of the lowest responsible bidder

i. arrange for a contract between such bidder and the Owner, and

ii. make available as work progresses (even if there should be a default, or a succession of defaults, under the contract or contracts of completion, arranged under this paragraph) sufficient funds to complete the Contractor’s obligations in accordance with the terms and conditions of the Contract including any applicable value-added taxes for which the Surety may be liable, less the Balance of Contract Price; or

d) pay the Owner the lesser of: (1) the Bond Amount, or (2) without duplication, the Owner’s Direct expenses plus the Owner’s proposed cost of completion of the Contract and any applicable value-added taxes for which the Surety may be liable, less the Balance of the Contract Price.

6.2 The option selected by the Surety is referred to in this Bond and the Schedules as the "Surety Option".

7. Owner’s Direct Expenses

7.1 Where the Surety is liable under this Bond, then the Surety shall be liable for the following fees and expenses, without duplication (the "Owner’s Direct Expenses"):

a) reasonable professional fees incurred by the Owner to complete the Contract which are a direct result of the Contractor’s default and which would not have been incurred but for the default of the Contractor;

b) reasonable external legal fees incurred by the Owner to complete the Contract, which are a direct result of the Contractor’s default and which would not have been incurred but for the default of the Contractor, with the exception of legal fees incurred by the Owner in defending a claim or action by the Contractor, or incurred by the Owner in pursuing an action against the Contractor;

c) reasonable, miscellaneous and out-of-pocket expenses incurred by the Owner to complete the Contract which are a direct result of the default of the Contractor and which would not have been incurred but for the default of the Contractor;

d) direct costs incurred as a result of an extension of the duration of the supply of services or materials used or reasonably required for use in the performance of the Contract, which are a direct result of the default of the Contractor and which would not have been incurred but for the default of the Contractor;

e) reasonable costs of the Necessary Interim Work;

f) reasonable costs of the Mitigation Work; and

g) any additional fees and expenses agreed to by the Obligee, the Principal and the Surety.

7.2 For the purpose of section 7.1(d), the "direct costs" incurred are the reasonable costs of performing the Contract during the extended period of time, including costs related to the additional supply of services or materials (including equipment rentals), insurance and surety bond premiums, and costs resulting from seasonal conditions, that, but for the extension, would not have been incurred.

7.3 Subject to any agreement to the contrary, between the Owner, the Principal and the Surety, the Surety shall not be liable under this Bond for:

a) any liquidated damages under the Contract;

b) if no liquidated damages are specified in the Contract, any damages caused by delayed performance or non-performance of the Contractor, except as provided in section 7.1(d); or

c) any indirect or consequential damages, including but not limited to costs of financing, extended financing, hedging arrangements, loss of or deferral of profit, productivity or opportunity, or head office overhead costs.

7.4 If the Surety is liable under this Bond then, at the Owner’s option, Owner’s Direct Expenses may be deducted by the Owner from the Balance of the Contract Price as defined hereinafter or will be promptly reimbursed by the Surety subject to the other terms, conditions and limitations of this Bond and will reduce the Bond Amount.

8. Conditions Precedent

8.1 The Surety shall have no liability or Obligations under this Bond unless all of the following conditions precedent (the "Conditions Precedent") have been satisfied:

a) The Contractor is, and is declared by the Owner to be, in default under the Contract;

b) The Owner has given such notice to the Contractor of a default of the Contractor, as may be required under the terms of the Contract;

c) The Owner has performed the Owner’s obligations under the Contract; and

d) The Owner has agreed to pay the Balance of Contract Price to the Surety or as directed by the Surety.

9. Balance of Contract Price

9.1 The term "Balance of Contract Price" means the total amount payable by the Owner to the Contractor under the Contract, including any adjustments to the price in accordance with the terms and conditions of the Contract, or other amounts to which the Contractor is entitled, reduced by any amounts deducted by the Owner for the Owner’s Direct Expenses under section 7.4 and all valid and proper payments made to or on behalf of the Contractor under the Contract.

9.2 The Balance of Contract Price shall be used by the Owner to first mitigate against any potential loss to the Surety under this Bond and then under the Labour & Material Payment Bond, and the Owner shall assert all rights and remedies available to the Owner to the Balance of Contract Price and make payment of the Balance of Contract Price as directed by the Surety.

10. Limitations on Surety’s Liability

10.1 Notwithstanding anything to the contrary contained in this Bond or in the Contract, the Surety shall not be liable for a greater sum than the Bond Amount under any circumstances.

10.2 The Surety’s responsibility to the Owner under this Bond in respect of any Surety Option or Owner’s Direct Expenses shall not be greater than that of the Contractor under the Contract.

11. Right of Action

11.1 No right of action shall accrue on this Bond to or for the use of any person or corporation other than the Owner named herein, or the heirs, executors, administrators or successors of the Owner.

12. Commencement of Action

12.1 It is a condition of this Bond that any suit or action must be commenced before the expiration of two (2) years from the earlier of: (a) the date of substantial performance of the Contract as defined under the Builders’ Lien Act (the "Act"); or (b) the date on which a Notice in respect of the default that is the subject of such suit or action is received by the Surety under this Bond. 12.2 The Owner, the Contractor and the Surety agree that any suit or action is to be made to a court of competent jurisdiction in the Northwest Territories and agree to submit to the jurisdiction of such court notwithstanding any terms to the contrary in the Contract.

13. Common Law Rights

13 The rights and obligations of the Owner, the Contractor, and the Surety under this Bond are in addition to their respective rights and obligations at common law and in equity.

14. Applicable Law

14 This Bond is governed by the laws of the Northwest Territories.

15. Notices

15 All notices under this Bond shall be delivered by registered mail, facsimile, or electronic mail at the addresses set out below, subject to any change of address in accordance with this section. Any notice given by facsimile or electronic mail shall be deemed to have been received on the next business day or, if later, on the date actually received if the person to whom the notice was given establishes that he or she did not, acting in good faith, receive the notice until that later date. Any notice given by registered mail shall be deemed to have been received five (5) days after the date on which it was mailed, exclusive of Saturdays and holidays or, if later, on the date actually received if the person to whom the notice was mailed establishes that he or she did not, acting in good faith, receive the notice until that later date. The address for the Owner or the Contractor may be changed by giving notice to the other parties setting out the new address in accordance with this section.

Surety Owner

(Surety corporate name) (Owner proper name)

(Address) (Address)

(Fax) (Fax)

(Email) (Email) Contractor

(Contractor proper name)

(Address)

(Fax)

(Email)

16. Headings for Reference Only

16.1 The headings and references to them in this part of this Bond, and shall not be taken into

IN WITNESS WHEREOF, the Contractor and the Surety

in the year 20 .

(Contractor proper name)

By:

Name:

Title:

I have the authority to bind the corporation.

Surety corporate name)

By:

Name:

Attorney-in-fact (Dénomination sociale de l’entrepreneur)

(adresse)

(télécopieur)

(courriel)

16 Titres aux fins de référence seulement

16.1 Les titres et les renvois à ces derniers qui figurent qu’à des fins de commodité, ne font pas partie pris en considération dans le cadre de l’interprétation

EN FOI DE QUOI, l’entrepreneur et la caution ont signé et

de l’année .

(Nom complet de l’entrepreneur)

Par :

Nom :

Titre :

J’ai le pouvoir de lier la personne morale.

(Dénomination sociale de la caution)

Par :

Nom :

Fondé de pouvoir * If there are two or more companies in partnership or joint venture, jointly and severally bound, insert the name of each partner or joint venture party, and insert the word "collectively" after the word "hereinafter" in the first line.

** If there are two or more surety companies, jointly and severally bound, insert the "[name of the surety company], a corporation created and existing under the laws of [place of incorporation]," for each surety, followed by "each as a surety and each duly authorized to transact the business of suretyship in the Northwest Territories and hereinafter collectively called the "Surety".

*** Insert the government, as applicable, or such other party deemed to be the owner under the Act, and entering into the public contract with the contractor. Form of Notice

Date:

Surety Name:

Surety Address:

Surety Address:

Surety’s Email:

Attention:

RE:

Bond No.:

Contractor

Owner:

Contract:

Dear _______________,

We hereby notify you that the Contractor is in default of the captioned Contract. In general terms the details of the default are as follows:

(Insert description of the Contractor in default)

We have given such notice of this default to the Contractor as is required under the Contract and enclose a copy for your records, and confirm that we have honoured our obligations under the Contract.

We call on you as Surety to honour your obligations under the Bond. We represent and warrant that we have in our possession the original, executed Performance Bond and herein enclose a copy.

Please provide us with potential dates and times to conduct the Post-Notice Conference under section 5.1 of the Bond.

OPTIONAL: In the circumstances we plan to proceed with work and incur expenses necessary in the circumstances to ensure public safety or to preserve or protect the work under the Contract from deterioration or damage, referred to as the Necessary Interim Work under section 4.1 of the Bond, and will provide you with information and access to discuss and observe this work. In the interim the following is a general description of the anticipated Necessary Interim Work: OPTIONAL: To assist you in your Investigation we enclose indicated in Appendix A to this Notice. [In addition to Appendix information or material that may expedite the Investigation.]

We look forward to receiving your acknowledgment of this and your request for any additional documentation or information Bond.

Yours truly,

(full corporate title)

By:

[Name] [Title] [Phone] [Email address]

CC: [Contractor] Appendix A to Form of Notices

The following checked documents and information are enclosed with this Notice:

Copy of full, executed Contract (with letter of award), including approved changes and pending changes relevant to this Notice (along with a copy of the Change Order log)

Copy of original schedule and latest approved schedule for the Contract including actual progress and the order to commence work

Specifications and drawings, including tender and post tender addenda, if any, applicable to the Contractor’s scope of work

Copies of and summary reconciliation of all invoices received under the Contract

Copies of and summary reconciliation of all payments made and holdback of any kind retained under the Contract

Copy of the most recent approved or certified payment application including the applicable Schedule of Values and copies of all unpaid payment applications

A detailed list of all outstanding work in the Contractor’s scope of work (including any deficiencies identified to date)

Any issued or pending backcharges from the Owner to the Contractor

Copy of any notice or correspondence to and from the Contractor related to the Contract and relevant to this Notice

Copy of any claim for lien, legal proceeding or other documents received on the Contract

Copy of any correspondence from subcontractors, suppliers or others indicating claims for unpaid amounts related to the Contract

Copy of the executed and delivered Performance Bond

[Additional documents or information] Surety’s Acknowledgement of Notice

Date:

Surety Name:

Surety Address:

Surety Address:

Surety’s Email:

Attention:

RE:

Bond No.:

Contractor

Owner:

Contract:

Dear ,

On behalf of the Surety defined in the captioned Bond we acknowledge receipt on of your

(date of receipt)

Notice under the captioned Performance Bond.

Please advise as soon as possible which of the following proposed dates and times and logistics are convenient to conduct the Post-Notice Conference:

Proposed Date Proposed time Meeting or conference/video conference logistics

To enable our Investigation of the Notice please provide us promptly with the information and/or documentation identified in Appendix A to this Acknowledgement (and as necessary with access for our staff or appointed representatives to attend the place where the Contract is being performed to inspect the condition and progress of the work), hereinafter the Information. We will provide you with the Surety’s Position to the Notice of the Notice based on the information, documentation and

We continue to reserve all of our rights pursuant to the Bond

Yours truly,

(full corporate name of Surety)

By:

[Name] [Title] [Phone] [Email address]

CC: [Contractor] Nous vous indiquerons la position de la caution à l’égard de notre réception de l’avis en fonction des renseignements, des fournis.

Nous continuons à nous réserver tous nos droits en vertu du

Veuillez agréer, Madame/Monsieur, l’expression de mes sentiments

[Dénomination sociale de la caution]

Par :

[Nom] [Titre] [Téléphone] [Adresse de courriel]

C.c. : [Entrepreneur] Appendix A to Surety’s Acknowledgement

Please identify and provide contact information for a person who is knowledgeable about the circumstances of the Notice and any Necessary Interim Work and Mitigation Work, and who can speak for the Owner.

Please identify and provide contact information for a person with whom arrangements can be made for access to the site where the work under the Contract is being performed.

Please provide copies of the following documentation in digital or hard copy format:

Copy of full, executed Contract (with letter of award), including approved changes and pending changes relevant to this Notice (along with a copy of the Change Order log)

Copy of original schedule and latest approved schedule for the Contract including actual progress and the order to commence work

Specifications and drawings, including tender and post tender addenda, if any, applicable to the Contractor’s scope of work

Copies of and summary reconciliation of all invoices received under the Contract

Copies of and summary reconciliation of all payments made and holdback of any kind retained under the Contract

Copy of the most recent approved or certified payment application including the applicable Schedule of Values and copies of all unpaid payment applications

A detailed list of all outstanding work in the Contractor’s scope of work (including any deficiencies identified to date)

Any issued or pending backcharges from the Owner to the Contractor

Copy of any notice or correspondence to and from the Contractor related to the Contract and relevant to this Notice

Copy of any claim for lien, legal proceeding or other documents received on the Contract

Copy of any correspondence from subcontractors, suppliers or others indicating claims for unpaid amounts related to the Contract

Copy of the executed and delivered Performance Bond

[Additional documents or information] Date:

Name/corporate title of Owner:

Address:

Address:

Email (if provided in Notice of Claim):

Attention:

RE:

Bond No.:

Contractor:

Owner:

Contract:

Dear _______________,

Based on the Information you have provided and given the [use only one of these Options]: Date :

Nom/dénomination sociale du propriétaire :

Adresse :

Adresse :

Adresse de courriel (si elle est fournie dans l’avis de réclamation) :

À l’attention de :

Objet :

No cautionnement :

Entrepreneur :

Propriétaire :

Contrat :

Madame/Monsieur,

Compte tenu des renseignements que vous avez fourni et vu déclarer ce qui suit [n’utilisez qu’une seule des options suivantes] The Surety accepts liability under the Bond. To satisfy our Obligation we propose, under section 6.1 of the Bond, to: [Select 1 and delete the others]

a) Promptly remedy the Contractor Default.

(Describe proposal and timelines)

b) Complete the Contract in accordance with its terms but only on the condition that the Owner undertakes to pay or to make available to the Surety the Balance of the Contract Price.

(Describe proposal and timelines)

c) Obtain a bid or bids for submission to the Owner for completing the Contract in accordance with its terms and conditions and, upon determination by the Owner and the Surety of the lowest responsible bidder:

i. arrange for a contract between such bidder and the Owner; and

ii. make available as work progresses (even if there should be a default, or a succession of defaults, under the contract or contracts of completion, arranged under this paragraph) sufficient funds to complete the Contractor’s obligations in accordance with the terms and conditions of the Contract including any applicable value-added taxes for which the Surety may be liable, less the Balance of Contract Price.

(Describe proposal and timelines)

d) pay the Owner the lesser of : (1) the Bond Amount, or (2) without duplication, the Owner’s Direct Expenses plus the Owner’s proposed cost of completion of the Contract and any applicable value-added taxes for which the Surety may be liable; less the Balance of Contract Price.

(Describe proposal and timelines) The Surety disputes the Notice. The reasons are as follows:

OPTION C

Based on the Information you have provided and the time available for our Investigation [if applicable] and taking into account genuine disputed issues as between the Owner and the Contractor that have not been resolved according to the terms of the Contract as outlined generally below,

the Surety is unable to determine whether or not one or more of the Conditions Precedent has been satisfied and, therefore, is not able to accept liability under the Bond.

In particular we have been unable to determine that [delete those that do not apply]

a) the Contractor is, in fact, in default of its obligations under the Contract.

(Provide further explanation as appropriate)

b) the Owner has performed its obligations under the Contract.

(Provide further explanation as appropriate)

c) the Owner has given the notice to the Contractor of a Contractor Default as required under the terms of the Contract.

(Provide further explanation as appropriate)

d) the Owner has agreed to apply the Balance of Contract Price as necessary to enable the Surety to exercise the Surety Option under the Bond.

(Provide further explanation as appropriate) With your agreement and assistance we are willing to extend our Investigation in an effort to resolve outstanding issues. Should this extended Investigation allow us to provide you with an alternative Surety’s Position we will do so promptly.

[If applicable] Under a full reservation of all of our rights under the Bond and the applicable law, and without prejudice to the rights and obligations of the Owner, the Contractor or the Surety under the Bond we propose to proceed as follows:

We continue to reserve all of our rights pursuant to the Bond and at law.

If you have any questions or concerns, please do not hesitate to contact us.

Yours truly,

(full corporate name of Surety)

By:

[Name] [Title] [Phone] [Email address]

CC: [Contractor]

FORM 21

(Subsection 32(2))

NOTICE OF SETTLEMENT MEETING

BUILDERS’ LIEN ACT

Court File No.

IN THE SUPREME COURT OF THE NORTHWEST TERRITORIES

BETWEEN Plaintiff(s)

and

Defendant(s)

NOTICE OF SETTLEMENT MEETING

The Supreme Court has directed that the settlement meeting in respect to the above action be held

on , 20 , at , at .

(day) (month) (year) (time) (place)

(Use A or B, whichever is applicable)

A. The Supreme Court has also directed that this action be tried on

, 20 , at , at .

(day) (month) (year) (time) (place)

B. In addition, this action has been set down for trial by the Supreme Court , at the non-jury sittings commencing on

, 20 , at , at .

(day) (month) (year) (time) (place)

Any settlement reached at a settlement meeting is binding upon every person served with notice of the settlement meeting, regardless of whether the person attends the settlement meeting, and orders may be made by the Court affecting your rights.

(Use where applicable)

If you do not appear at the trial, proceedings may be taken in your absence and you may be deprived of all benefit of the action and your rights may be disposed of in your absence. All parties are required to be prepared to proceed with the trial, and to bring with them on the trial day all evidence and witnesses necessary to prove their respective claims or defences. If any person fails to comply with these directions, the costs of the day may be given against that party should it be necessary to adjourn the trial of this action.

This is an action to enforce a construction lien arising from an improvement of the following premises:

(concise description sufficient to identify premises)

This notice is served by

Date:

To:

FORM 22

(Subsection 32(4))

NOTICE OF TRIAL

BUILDERS’ LIEN ACT

Court File No.

IN THE SUPREME COURT OF THE NORTHWEST TERRITORIES

BETWEEN Plaintiff(s)

and

Defendant(s)

NOTICE OF TRIAL

(Use A or B, whichever is applicable)

A. The Supreme Court of the Northwest Territories has directed that this action be tried on

day of 20 , at , at .

(day) (month) (year) (time) (place)

B. This action has been set down for trial by the Supreme Court of the Northwest Territories, at the non-jury sittings

commencing on day of 20 , at , at

(day) (month) (year) (time)

.

(place)

If you do not appear at the trial, proceedings may be taken in your absence and you may be deprived of all benefit of the action and your rights may be disposed of in your absence.

All parties are required to be prepared to proceed with the trial, and to bring with them on the trial day all evidence and witnesses necessary to prove their respective claims or defences. If any person fails to comply with these directions, the costs of the day may be given against that party should it be necessary to adjourn the trial of this action. This is an action to enforce a construction lien arising

(concise description sufficient

This notice is served by

Date:

To: Il s’agit d’une action en vue de faire valoir un privilège d’améliorations effectuées aux lieux suivants :

(description concise suffisante

Le présent avis est signifié par

Date :

Destinataire :

FORM 23

(Subsections 33(4))

SETTLEMENT STATEMENT

BUILDERS’ LIEN ACT

Court File No.

IN THE SUPREME COURT OF THE NORTHWEST TERRITORIES

BETWEEN Plaintiff(s)

and

Defendant(s)

SETTLEMENT STATEMENT

BEFORE JUSTICE

on

(day, month, year) (Clerk)

Plaintiff(s) Counsel/representative(s)

N/A

N/A

N/A

Defendant(s) Counsel/representative(s)

N/A

N/A

N/A

FORMULAIRE

CONSTAT DE TRANSACTION

LOI SUR LES PRIVILÈGES

COUR SUPRÊME DES TERRITOIRES

ENTRE :

et

CONSTAT DE TRANSACTION

DEVANT LE JUGE DE PAIX

le

(jour/mois/année)

Demandeur(s)

S/O

S/O

S/O

Défendeur(s)

S/O

S/O

S/O

SETTLEMENT BY CONSENT

see attached Agreement

For $ to Plaintiff(s) Defendant(s)

+ Interest at

+ Expenses to be assessed

= TOTAL

Payment Immediate Scheduled

Terms/other orders

Plaintiff Defendant

RÈGLEMENT SUR CONSENTEMENT

voir l’ENTENTE ci-jointe

Montant $ Au défendeur(s) demandeur(s)

+ Intérêt de % à

+ Frais À évaluer

= TOTAL

Paiement Immédiat Selon le calendrier

Modalités/autres ordonnances

Demandeur Défendeur(s) (Subsection 2(1))

FEES

Item Reference Description Amount

1 s. 45(1) of Act Lien preservation - registration in land titles office of claim for $30 lien on certificate of title of premises in accordance with Part 5

2 s. 47(3)(b) of Act Registration by lien claimant of certificate of pending litigation $30 with Registrar on certificate of title of premises

3 s. 55(1) of Act Registration of a discharge of lien $30

4 s. 55(2) of Act Written notice of lien withdrawal $30

5 s. 56 of Act Registration of discharge of preserved or perfected lien on $30 certificate of title of applicable premises

6 s. 57(1) of Act Registration on certificate of title of premises of notice of $30 postponement

7 s. 8 of these Proposal to publish (non-refundable) $30 regulations