On January 1, 2026, numerous major amendments to Ontario's
Construction Act came into force. These changes reflect
years of legislative reform aimed at modernizing payment practices,
dispute resolution, holdback administration, and other foundational
aspects of construction law in Ontario.
For industry stakeholders who manage projects – whether
you are an owner, contractor, subcontractor, or supplier –
understanding these changes is essential for cash-flow planning, as
well as the avoidance of legal disputes under the Construction
Act.
Mandatory Annual Release of Holdback
The most impactful of the new Construction Act changes
is likely to be the move to mandatory annual release of
holdback.
