Chapter2 short sections

Holdbacks

The money retained for lien security

Part 1

Retain the right percentage for the project

The basic statutory holdback is 7.5% in Manitoba and generally 10% in the other provincial regimes available here. Federal holdback is contractual, subject to provincial limits. Tiercord tracks the running holdback per contract and shows you the balance as it grows.

Holdback release and lien preservation have separate statutory triggers. Record the event that governs each clock, including effective certificate delivery where required.

Part 2

Two clocks, separate source events

Tiercord shows the holdback and lien reminders side by side when the required source events have been recorded. Manitoba requires a reviewed event for each clock. The standard periods differ by province:

Holdback release, 40 clear days in Saskatchewan (payable on the 41st day, Legislation Act s. 2-28(4)), 55 in BC, 60 in Ontario, Alberta and Manitoba.
Lien filing, 40 clear days in Saskatchewan (the shortest in the country; the lien expires on the 41st day, so register by the 40th), 45 in BC, 60 in Ontario, Alberta and Manitoba.

Expiry of a reminder does not authorize release: check liens, notices, security and the applicable statutory conditions. A claimant’s last supply can control its lien period where the province’s law says so, and Alberta gives 90 days rather than 60 to oil and gas wells, well sites, and improvements primarily for furnishing concrete. Confirm the project class before releasing an Alberta holdback on the 60-day figure. Ontario also has a mandatory annual holdback-release cycle (Form 6), which Tiercord schedules for ON projects.

Open holdbacks

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