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ARTICLE · 14 APRIL 2021

Obligations When Acting As Your Own General Contractor

McKercher LLP
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Acting as your own general contractor has its perks, however it unfortunately does not free you of the legal obligations that exist for both owners and general contractors within...

CanadaReal Estate and Construction
Alexandra G. Barlas
Alexandra G. Barlas
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Acting as your own general contractor has its perks, however it unfortunately does not free you of the legal obligations that exist for both owners and general contractors within The Builders' Lien Act  (the "Act"). Understanding the proper procedure to be followed, especially when it comes to builders' lien holdbacks, is essential in safeguarding against issues relating to payment throughout the construction process.

Holdback Requirement

Pursuant to the Act, each payer in the construction pyramid is required to holdback 10% of the greater of (1) the value of the services or materials as they are actually provided under the contract or subcontract; or (2) the amount of any payment made on account of the contract or subcontract price. As owner and general contractor, you are required to maintain the same holdback for the contractors below you, and this obligation applies regardless of any payment terms under any contract or subcontract. The holdback that you

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