Annual Holdback Release Checklist

Annual Holdback Release Checklist

Fast-Fact Summary Box

• Template Type: Statutory Holdback Release Control
• Governing Framework: Ontario Construction Act & O. Reg. 304/18
• Target Trade: Owners, General Contractors & Subcontractors
• Primary Operational Risk: Form 6 publication timing, lien review, and day 60 to day 74 payout control

Scope Boundaries (Who/What it applies to)

This checklist applies to multi-year commercial, industrial, institutional, and civil construction contracts in Ontario where the contract explicitly provides for the annual release of holdback. It governs the administrative and financial actions of Owners, General Contractors, and Subcontractors. The scope is strictly limited to the release of the 10% basic holdback accrued during each annual contract cycle. It does not apply to finishing holdbacks, specialty design-build phased holdbacks, or projects with a contract value below the statutory threshold unless contractually specified.

Mandatory Deliverables & Administrative Windows

• Contract Anniversary Review: Initiated 30 days prior to each contract anniversary to reconcile all progress billings and change orders.
• Proper Invoice Submission: Delivered by the contractor on or immediately following the contract anniversary date, detailing the accrued holdback amount.
• Form 6 Publication: Must be published by the owner in an electronic construction trade news website within 14 days after the contract anniversary.
• Lien Search Window: Conducted by the owner's legal representative on day 45 and day 59 following the publication of Form 6.
• Statutory Declarations: Submission of a notarized CCDC 9A Statutory Declaration by the Prime Contractor, or CCDC 9B by Subcontractors, dated within 5 business days of the proper invoice.
• WSIB Clearance: A valid Workplace Safety and Insurance Board (WSIB) clearance certificate covering the entire annual period.
• Payout Window: Execution of the holdback payment must occur strictly between day 60 and day 74 post-publication of Form 6, provided no liens have been preserved.

Ontario Regulatory Compliance Notes

This checklist incorporates the mandatory requirements of the Ontario Construction Act and O. Reg. 304/18, including all statutory payment and dispute timelines:

• 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.
• 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. Payment of the accrued basic holdback must occur no earlier than day 60 and no later than day 74 after publication, provided no liens are preserved.
• 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.
• 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.

Form/Sign-off Requirements

• Owner Representative Sign-off: Written verification of the Form 6 publication date, including the electronic registry publication certificate.
• Contractor Representative Sign-off: Written acknowledgement of the proper invoice receipt date and verified holdback calculation.
• Lien Search Clearance: Certified title search report confirming zero registered claims for lien up to day 59 post-publication.
• Statutory Declaration Attachment: Signed and sealed CCDC 9A or 9B form attached to the release file.
• WSIB Clearance Attachment: Active WSIB clearance certificate valid on the date of payment execution.
• Adjudication Status Confirmation: Written sign-off from both parties confirming that no active ODACC adjudications exist regarding the holdback amount.
• Record Retention: All signed checklists, publication certificates, and payment records must be archived for a minimum of 7 years.

Official Verification Sources

• Ontario Construction Act, R.S.O. 1990, c. C.30
• O. Reg. 304/18 (Procedures and Forms)