Construction Liens in Ontario

Construction Liens: 10% for 60 days

The law with respect to construction liens has changed over time. There are holdback provisions, time periods and amounts.

This was set out originally under the Mechanics Lien Act, then the Construction Lien Act, and now presently the Construction Act.

The amount was initially 15% for 37 days, then 10% for 45 days, and now 10% for 60 days.

That’s the normal required holdback. No problems, simply business as usual.

If the Owner fails to do so, then then may be obligated to pay the amount once again. So, they will pay 110% of the project for failing to abide by the law.

If  something goes wrong, and there’s actual notice of a lien, then the Owner of the property must withhold that amount in addition to the statutory holdback.

Brian Madigan LL.B., Broker

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