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ARTICLE · 09 FEBRUARY 2026

New Year, New Rules: Construction Act Amendments Explained

Gardiner Roberts LLP
Gardiner Roberts LLP
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Several amendments to the Ontario Construction Act (the "Act") came into force on January 1, 2026, pursuant to Bill 216, Building Ontario For You Act, and Bill 60, Fighting Delays, Building Fact Act.

CanadaReal Estate and Construction
Tamara Katz
Tamara Katz
Daniel Kuhnreich
Daniel Kuhnreich
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Several amendments to the Ontario Construction Act (the "Act") came into force on January 1, 2026, pursuant to Bill 216, Building Ontario For You Act, and Bill 60, Fighting Delays, Building Fact Act. These amendments include changes to the definitions, prompt payment provisions, adjudication process and most impactful, mandatory annual holdback releases. We highlight a few of the notable changes that developers, owners, contractors and subcontractors should be aware of.

New Mandatory Annual Releases from Holdbacks

Sections 26, 26.1, 26.2, 27 and 27.1 of the Act have been repealed and replaced with a new framework governing holdback payments. There are now mandatory annual holdback payments for owners, contractors and subcontractors. The following process is to be followed:

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