Construction Holdback Rules in New Brunswick
Under the Construction Prompt Payment and Adjudication Act, SNB 2023, c. 15
New Brunswick requires a statutory holdback of 10% of each payment (NB Construction Remedies Act s. 47(1)-(2)), 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 New Brunswick the holdback is held for 60 days before it can be released, tied to substantial performance and the expiry of the lien-filing window.
New Brunswick holdback deadlines
The statutory clocks for this topic in New Brunswick, with section citations.
| Clock | Value | Statute |
|---|---|---|
Holdback retained Percentage of each payment retained as statutory holdback to protect lien claimants. NB Construction Remedies Act Section 47 | 10% | NB Construction Remedies Act Section 47 |
Holdback release period Period that must run before holdback may be released. NB Construction Remedies Act Section 47 | 60 days | NB Construction Remedies Act Section 47 |
How much, and from what
New Brunswick 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 NB holds it
Holdback in New Brunswick is retained for 60 days (NB Construction Remedies Act s. 47(1)-(2)), running until the lien-filing window of 60 days (NB Construction Remedies Act ss. 59-61) 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 New Brunswick lien period has run and no liens are registered, the holdback can be released.
A note on status
New Brunswick's prompt-payment framework is not yet in force, but that does not touch the figures on this page. The holdback percentage, the holdback period and the lien window all come from the Construction Remedies Act (SNB 2020, c. 29), which is in force today and applies whether or not prompt payment has been proclaimed.
Holdback in New Brunswick: FAQ
How much holdback must I retain in New Brunswick?
10% of the value of the work or materials (NB Construction Remedies Act s. 47(1)-(2)), taken from each payment.
How long is holdback held in New Brunswick?
60 days (NB Construction Remedies Act s. 47(1)-(2)), until the 60-day lien-filing window expires with no outstanding liens.
See the full New Brunswick guide
Every deadline, notice and adjudication rule in one place.