Construction Holdback Rules in Nova Scotia
Under the Builders' Lien Act (prompt payment and adjudication amendments, SNS 2019, c. 12 and SNS 2022, c. 43), RSNS 1989, c. 277 (am. SNS 2019, c. 12 and SNS 2022, c. 43, not proclaimed)
Nova Scotia requires a statutory holdback of 10% of each payment (NS Builders' Lien Act s. 13(2) (60 days), s. 13(6) (release), s. 13(8) (interest after 65 days) (current)), 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 Nova Scotia the holdback is held for 60 days before it can be released, tied to substantial performance and the expiry of the lien-filing window.
Nova Scotia holdback deadlines
The statutory clocks for this topic in Nova Scotia, with section citations.
| Clock | Value | Statute |
|---|---|---|
Holdback retained Percentage of each payment retained as statutory holdback to protect lien claimants. NS Builders' Lien Act Section 13 | 10% | NS Builders' Lien Act Section 13 |
Holdback release period Period that must run before holdback may be released. NS Builders' Lien Act Section 13 | 60 days | NS Builders' Lien Act Section 13 |
How much, and from what
Nova Scotia 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 NS holds it
Holdback in Nova Scotia is retained for 60 days (NS Builders' Lien Act s. 13(2) (60 days), s. 13(6) (release), s. 13(8) (interest after 65 days) (current)), running until the lien-filing window of 60 days (NS Builders' Lien Act s. 24 (current)) 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 Nova Scotia lien period has run and no liens are registered, the holdback can be released.
A note on status
Nova Scotia'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 Builders' Lien Act (RSNS 1989, c. 277), which is in force today and applies whether or not prompt payment has been proclaimed.
Holdback in Nova Scotia: FAQ
How much holdback must I retain in Nova Scotia?
10% of the value of the work or materials (NS Builders' Lien Act s. 13(2) (60 days), s. 13(6) (release), s. 13(8) (interest after 65 days) (current)), taken from each payment.
How long is holdback held in Nova Scotia?
60 days (NS Builders' Lien Act s. 13(2) (60 days), s. 13(6) (release), s. 13(8) (interest after 65 days) (current)), until the 60-day lien-filing window expires with no outstanding liens.
See the full Nova Scotia guide
Every deadline, notice and adjudication rule in one place.