60-74 Day Holdback Payout Window

60-74 Day Holdback Payout Window

Fast-Fact Summary

• Governing Agency: Ontario Ministry of the Attorney General / Construction Act framework
• Form, Bylaw, or Regulation: Notice of Annual Release of Holdback (Form 6), Construction Act, R.S.O. 1990, c. C.30
• Effective/Current Anchor: 2026 Ontario Construction Act amendments (Bill 216 and Bill 60)
• Direct Portal or Source: https://www.ontario.ca/laws/statute/90c30

Mandatory Scope

This requirement applies to all construction contracts in Ontario that extend beyond one year. It governs owners, general contractors, and subcontractors across all trade categories. There are no minimum worker counts, project values, or equipment classes required to trigger this rule; any multi-year contract subject to the Ontario Construction Act must comply with these holdback release provisions.

Deadlines & Administrative Windows

• Annual Holdback Rule: For contracts extending beyond one year, owners must publish a Notice of Annual Release of Holdback (Form 6) on an electronic construction trade news website within 14 days after each contract anniversary.
• Payout Window: Payment of the accrued basic holdback must occur no earlier than day 60 and no later than day 74 after the publication of Form 6, provided no liens are preserved.
• 7-Day Invoicing Rule: Invoices are legally deemed proper unless the owner gives a formal written notice of deficiency within 7 days after receiving the invoice. Missing the 7-day notice window forfeits the right to dispute invoice form or structure and starts the 28-day prompt-payment timeline.
• Repeal of Section 27.1: The former section 27.1 notice-of-non-payment mechanism for refusing holdback distribution due to deficient or incomplete work is repealed. Holdback use is restricted to formal contract abandonment or termination scenarios and preserved lien risk.
• Adjudication Window: Parties have a strict 90-day window after contract completion, abandonment, or termination to initiate interim binding adjudication through ODACC or a qualified private adjudicator.

Financial & Legal Liability

• Non-Compliance Penalty: Missing the payout window creates payment administration disputes, subcontractor escalation, and exposure to interest penalties under the Construction Act. No specific verified CAD penalty amount is defined in the statute, but it exposes the payer to prompt-payment interest and adjudication.
• Average WSIB Premium Rate: $1.23 per $100 of insurable payroll, down from $1.25 per $100 of insurable payroll.
• G6 Non-Residential Construction Rate: $1.61 per $100 of insurable payroll.
• 2026 Maximum Insurable Earnings Ceiling: $121,700.

Step-by-Step Filing Instructions

• Step 1: Track Contract Anniversary: Monitor the project schedule to identify the 1-year contract anniversary.
• Step 2: Prepare Form 6: Complete the Notice of Annual Release of Holdback (Form 6) in accordance with the Construction Act regulations.
• Step 3: Publish Form 6: Publish the completed Form 6 on a registered electronic construction trade news website within 14 days after the contract anniversary.
• Step 4: Monitor Lien Registry: Monitor the land registry for any preserved liens during the 59-day period following publication.
• Step 5: Execute Payout: If no liens are preserved, release the accrued basic holdback payment to the contractor within the mandatory day 60 to day 74 window.
• Step 6: Document Retainage: Maintain all publication receipts, payment certificates, and bank transfer confirmations in the project compliance file.

2026 Inspection Notes

For 2026 construction compliance context, pay close attention to working-at-heights training records, trenching and excavation controls, and training/competency documentation. Ensure all site personnel have active, verified training credentials readily accessible for Ministry of Labour, Immigration, Training and Skills Development (MLITSD) inspectors.

Official Sources

• https://www.ontario.ca/laws/statute/90c30
• https://www.ontario.ca/laws/regulation/180304