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ARTICLE · 19 AUGUST 2025

Annual Release Of Holdback Under Ontario's Construction Act: When Does It Apply?

Borden Ladner Gervais LLP
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In 2024, the Ontario Government conducted a review of the Ontario Construction Act. As a result, the Government introduced, the Building Ontario for You Act (Budget Measures) (Bill 216)...

CanadaReal Estate and Construction
Daniel Boan
Daniel Boan
Laura Delemere
Laura Delemere
Rebecca Torrance
Rebecca Torrance
Kasim Salim
Kasim Salim
Ricksen Tam
Ricksen Tam
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In 2024, the Ontario Government conducted a review of the Ontario Construction Act. As a result, the Government introduced, the Building Ontario for You Act (Budget Measures) (Bill 216), which received Royal Assent on Nov. 6, 2024. Bill 216 introduces several amendments to Ontario's Construction Act (the Amended Construction Act) that will impact contract administration and dispute resolution in Ontario's construction industry.

The Amended Construction Act introduces, among other things, mandatory annual release of holdback on certain construction contracts (Mandatory Annual Release). However, there appears to be some confusion in the industry as to when these provisions take effect.

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