Construction Holdback Rules in Alberta
Under the Prompt Payment and Construction Lien Act, RSA 2000, c. P-26.4
Alberta requires a statutory holdback of 10% of each payment (AB PPCLA s. 18(1), s. 27), retained rather than paid out, to protect lien claimants further down the chain. It is a standing obligation that runs alongside the prompt-payment clock, not a payment dispute.
In Alberta the holdback is held for 60 days before it can be released, tied to substantial performance and the expiry of the lien-filing window.
Alberta holdback deadlines
The statutory clocks for this topic in Alberta, with section citations.
| Clock | Value | Statute |
|---|---|---|
Holdback retained Percentage of each payment retained as statutory holdback to protect lien claimants. AB PPCLA Section 18 | 10% | AB PPCLA Section 18 |
Holdback release period Period that must run before holdback may be released. AB PPCLA Section 18 | 60 days | AB PPCLA Section 18 |
How much, and from what
Alberta fixes the holdback at 10% of the value of the work or materials, taken from each payment as the work proceeds. The held-back amount accumulates over the life of the contract.
How long AB holds it
Holdback in Alberta is retained for 60 days (AB PPCLA s. 18(1), s. 27), running until the lien-filing window of 60 days (AB PPCLA s. 41) has expired with no liens outstanding. Releasing it early can expose the payer to paying twice if a valid lien is later filed.
Releasing holdback
Once the Alberta lien period has run and no liens are registered, the holdback can be released. Tiercord tracks the holdback balance and the release date for each contract and surfaces both on the deadline dashboard.
Holdback in Alberta: FAQ
How much holdback must I retain in Alberta?
10% of the value of the work or materials (AB PPCLA s. 18(1), s. 27), taken from each payment.
How long is holdback held in Alberta?
60 days (AB PPCLA s. 18(1), s. 27), until the 60-day lien-filing window expires with no outstanding liens.
See the full Alberta guide
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