Ontario's Construction Act changes effective January 1, 2026 introduced a new annual holdback release process that every contractor and subcontractor needs to understand. Miss a deadline in this cascade, and you risk losing your payment rights.
This guide breaks down the new 2026 annual holdback rules in Ontario, explains the release timeline, and tells you exactly what dates to track.
Tracking these deadlines manually?
BuilderLien automatically calculates every deadline in the annual holdback cascade and sends you alerts before each one.
Join the WaitlistHow the Ontario Annual Holdback Release Works in 2026
The annual holdback is the 10% of each progress payment that owners must retain under the Construction Act. Under the 2026 Ontario holdback release rules, this holdback is released annually through a specific cascade of deadlines.
Here's the sequence:
The Annual Holdback Cascade Timeline
Contract Anniversary
The anniversary of your contract triggers the holdback release process.
14 Days: Owner Publishes Notice
Within 14 days of the anniversary, the owner must publish a notice of intended holdback release.
60-74 Days: Owner Pays Holdback
The owner pays the holdback to the general contractor 60-74 days after notice publication.
14 Days: GC Pays Subcontractors
General contractor must pay subcontractors within 14 days of receiving the holdback.
The 14-Day Holdback Notice Requirement in Ontario
The construction holdback 14-day notice is a critical new requirement. Within 14 days of your contract anniversary, the project owner must publish a formal notice that they intend to release the holdback.
This notice starts the clock on the payment timeline. If you're a contractor, you need to track:
- Your contract anniversary date
- The 14-day window for notice publication
- The 60-74 day payment window that follows
When Do the New Holdback Rules Apply?
The Construction Act 2026 amendments in Ontario include transition rules for existing contracts:
Transition Rule
For contracts signed before January 1, 2026, the first mandatory annual holdback release occurs on the second anniversary after January 1, 2026.
This means if you have a contract signed in 2024, your first mandatory annual holdback release under the new rules won't be until 2028 at the earliest.
What About Lien Rights Under the 2026 Rules?
Good news: Bill 60 originally proposed automatic lien expiration, but this provision was scrapped. Under the current 2026 rules:
- Your lien rights remain intact
- Liens do not expire automatically
- You still need to preserve and perfect liens within existing timeframes
This is important protection for contractors. The annual holdback release process is separate from your lien rights, and missing a holdback deadline doesn't automatically eliminate your right to file a lien.
Deadlines Ontario Contractors Must Track in 2026
Under the new rules, here's what you need on your calendar for each project:
| Deadline | Who's Responsible |
|---|---|
| Contract anniversary | Track it yourself |
| Anniversary + 14 days (notice) | Owner must publish |
| Notice + 60-74 days (payment) | Owner must pay GC |
| Payment + 14 days (cascade) | GC must pay subs |
Stop Tracking Deadlines in Spreadsheets
BuilderLien calculates every deadline automatically and sends you alerts 7, 3, and 1 day before each one. Built specifically for Ontario contractors under the 2026 Construction Act rules.
Join the Waitlist - Launching February 2026Frequently Asked Questions: Ontario Annual Holdback 2026
When does Ontario holdback release in 2026?
Annual holdback release is triggered on your contract anniversary date. The owner has 14 days to publish notice, then 60-74 days to pay. For existing contracts, the first mandatory release is on the second anniversary after January 1, 2026.
What is the annual holdback cascade in Ontario?
The cascade is the sequence of deadlines: anniversary triggers the process, owner publishes notice within 14 days, owner pays holdback 60-74 days after notice, then the general contractor pays subcontractors within 14 days of receiving funds.
How does the 14-day holdback notice work in Ontario?
Within 14 days of the contract anniversary, the owner must publish a notice of intended holdback release. This starts the 60-74 day payment window. Your lien rights remain intact even if the owner misses this deadline.
Do Ontario lien rights expire automatically in 2026?
No. Bill 60's automatic lien expiration provision was scrapped. Your lien rights remain intact under the 2026 rules. You still need to preserve and perfect your lien within existing timeframes, but they don't expire automatically.
When do the new Ontario holdback rules apply to existing contracts?
For contracts signed before January 1, 2026, the first mandatory annual holdback release occurs on the second anniversary after January 1, 2026. This transition rule gives existing projects time to adjust.