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ARTICLE · 01 APRIL 2020

COVID-19 And Release Of Holdback Under Ontario's Construction Act

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On March 17, 2020 the Ontario Government declared a state of emergency.

CanadaCoronavirus (COVID-19)

On March 17, 2020 the Ontario Government declared a state of emergency. On March 20, 2020 the Government passed O. Reg. 73/20 which automatically suspends any limitation period imposed by any Ontario law for the duration of the emergency, retroactive to March 16, 2020.

Under Ontario's Construction Act R.S.O. 1990 (the "Act") an owner (including a landlord paying tenant improvement allowances after completion of tenant work) is required to release the holdback after "all liens that may be claimed against that holdback have expired or been satisfied, discharged or otherwise provided for" under the Act. Liens will typically expire unless they are preserved (generally, registered against title) within 60 days of the date of publication of a certificate of substantial performance. However, if the effect of O. Reg. 73/20  is to suspend the time for liens to be registered, that would mean liens would not expire after 60 days (as long as the Regulation is in effect). And, if

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