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ARTICLE · 14 JANUARY 2026

Changes To Ontario's Construction Act Effective January 1, 2026

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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The most significant implication of these amendments are to the administration of the statutory holdback and the requirement for the annual release of holdback going forward for construction projects in Ontario.

CanadaReal Estate and Construction
David Major
David Major
Laura Delemere
Laura Delemere
Daniel Boan
Daniel Boan
Dhara Pathak
Dhara Pathak
Camilo Silvera
Camilo Silvera
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The most recent amendments to Ontario's Construction Act are now effective (as of January 1, 2026).

The most significant implication of these amendments are to the administration of the statutory holdback and the requirement for the annual release of holdback going forward for construction projects in Ontario.

The amendments were introduced through Building Ontario for You Act (Budget Measures) (Bill 216). An overview of key amendments under Bill 216 is set out in BLG's article: Are you prepared for the new changes to Ontario's  Construction Act?

More recently, the Ontario government announced the following:

  • The Ontario government proclaimed that the amendments would come into force on January 1, 2026; but changed the original proposed process for the annual release of holdback (section 26). Most importantly, the requirement for annual lien expiry has been removed. Owners will still be required to release holdback on an annual basis; however, lien rights will not expire on an

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