Construction Holdback Rules in Ontario
Under the Construction Act, R.S.O. 1990, c. C.30
Ontario requires a statutory holdback of 10% of each payment (Ont. Construction Act s. 22, s. 31), 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 Ontario the holdback is held for 60 days before it can be released, tied to substantial performance and the expiry of the lien-filing window.
Ontario holdback deadlines
The statutory clocks for this topic in Ontario, with section citations.
| Clock | Value | Statute |
|---|---|---|
Holdback retained Percentage of each payment retained as statutory holdback to protect lien claimants. Ont. Construction Act Section 22, Section 31 | 10% | Ont. Construction Act Section 22, Section 31 |
Holdback release period Period that must run before holdback may be released. Ont. Construction Act Section 22, Section 31 | 60 days | Ont. Construction Act Section 22, Section 31 |
How much, and from what
Ontario 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 ON holds it
Holdback in Ontario is retained for 60 days (Ont. Construction Act s. 22, s. 31), running until the lien-filing window of 60 days (Ont. Construction Act s. 31) 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 Ontario 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 Ontario: FAQ
How much holdback must I retain in Ontario?
10% of the value of the work or materials (Ont. Construction Act s. 22, s. 31), taken from each payment.
How long is holdback held in Ontario?
60 days (Ont. Construction Act s. 22, s. 31), until the 60-day lien-filing window expires with no outstanding liens.
See the full Ontario guide
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