Construction Holdback Requirements – Not For Dummies

Statutory construction holdback requirements can be remarkably tricky to interpret, presenting challenges for both novice and experienced players in the construction industry.

It is important to note that holdback requirements under the Alberta Builders' Lien Act apply to projects of any size, from major industrial facilities to home renovations. In some sectors, particularly residential construction, holdback requirements are frequently misunderstood (to the considerable peril of the homeowner, who is often inexperienced regarding holdbacks and liens). In other sectors, particularly some professional design services and material suppliers, holdbacks are intentionally avoided, even if the Builders' Lien Act is applicable.