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ARTICLE · 18 DECEMBER 2019

Should You Be Retaining Lien Holdback Under Your Repair Or Maintenance Contract?

Osler, Hoskin & Harcourt LLP
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Among various remedies provided for by the Construction Act of Ontario (Act), a lien remains the most sought after.

CanadaReal Estate and Construction
Andrew Wong
Andrew Wong
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In this Update

  • Changes to the definition of “improvement” after July 1, 2018
  • Differentiate between contracts for capital repair and maintenance

Among various remedies provided for by the Construction Act of Ontario (Act), a lien remains the most sought after. A person who supplies services or materials to an improvement has a lien upon the interest of the owner in the premises improved for the price of those services or materials. Owners (and any other payors in the construction pyramid) must retain a legislative holdback, if their contract or subcontract relates to services or materials under which a lien may arise. Given this, the understanding of what constitutes an improvement is an important one.  

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