Construction Holdback Rules in Manitoba
Under the The Builders' Liens Act, C.C.S.M. c. B91
Manitoba's basic statutory holdback is 7.5%, under section 24 of The Builders' Liens Act. The main retention period is 60 days, but the correct source event and outstanding lien claims must be reviewed before release.
Manitoba holdback deadlines
The statutory clocks for this topic in Manitoba, with section citations.
| Clock | Value | Statute |
|---|---|---|
Holdback retained Percentage of each payment retained as statutory holdback to protect lien claimants. MB Builders' Liens Act Sections 24 | 7.5% | MB Builders' Liens Act Sections 24 |
Holdback release period Period that must run before holdback may be released. MB Builders' Liens Act Sections 24 | 60 days | MB Builders' Liens Act Sections 24 |
Main and finishing holdbacks
Section 24(1) measures the main 60-day period from the earliest of the certificate of substantial performance being effectively given under section 47, full completion, or abandonment. The certificate's written date alone does not prove when it was effectively given.
Section 24(2) separately covers work and materials supplied after substantial performance. Finishing work may therefore require a separate holdback and a separate clock. A general project completion field cannot safely establish every contract's release date.
Check claims before release
Section 27(3) governs when payment can safely be made having regard to liens and written notices. Expiry of 60 days does not itself authorize release. Review registered liens, notices, any discharge or security, and the applicable main or finishing holdback.
Section 24 and the general Builders' Liens Regulation also address holdback accounts, including the prescribed $200,000 threshold and statutory exceptions. Sections 4–9 impose separate trust duties; moving money out of a holdback does not resolve those duties.
Federal projects in Manitoba
Qualifying federal work is governed by the federal prompt-payment Act. Section 12 permits contractual holdback subject to provincial limits and release rules; it does not impose a provincial land lien on federal real property. Manitoba is not currently a federally designated province, so its provincial prompt-payment periods do not replace the federal downstream periods.
Holdback in Manitoba: FAQ
Is Manitoba's holdback 10%?
The basic statutory percentage is 7.5%. Verify the contract, statutory scope and any separate security obligation before deciding what must be retained or released.
See the full Manitoba guide
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