Substantial Performance Closeout Checklist

Substantial Performance Closeout Checklist

Fast-Fact Summary Box

• Template Type: Closeout and Handover Checklist
• Governing Framework: Ontario Construction Act & CCDC Closeout Standards
• Target Trade: General Contractors & Project Managers
• Primary Operational Risk: Publication, lien, deficiency, warranty, and final-payment coordination

Scope Boundaries (Who/What it applies to)

This template applies to General Contractors, Project Managers, Owners, and Payment Certifiers executing closeout procedures on commercial, industrial, and institutional (ICI) projects in Ontario. It governs the administrative transition from active construction to the warranty phase. The scope encompasses the verification of substantial performance, the statutory release of basic holdback, and the formal transfer of care, custody, and control of the facility.

Mandatory Deliverables & Administrative Windows

• Form 9 Preparation: Draft Certificate of Substantial Performance (Form 9) prepared by the contractor and submitted to the Payment Certifier for review.
• Deficiency Listing: Comprehensive list of minor outstanding items, valued and agreed upon by both parties, compiled within 5 business days of the inspection.
• Form 9 Publication: Publication of the certified Form 9 in an electronic construction trade news website within 7 days of its signature by the Payment Certifier.
• Closeout Submittals: Delivery of as-built drawings, operation and maintenance (O&M) manuals, and attic stock to the owner within 30 days of substantial performance.
• Statutory Declarations: Submission of a notarized CCDC 9A Statutory Declaration and a current WSIB clearance certificate to support the release of holdback.

Ontario Regulatory Compliance Notes

This checklist is governed by the Ontario Construction Act and CCDC closeout standards. Under the January 1, 2026 Ontario Construction Act amendments, the following statutory rules apply to all closeout and payment workflows:

• Proper Invoice Validation: 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.
• Annual Holdback Release: 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.
• Holdback Restrictions: 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 Timelines: 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

• Form 9 Certification: Signed and dated by the Payment Certifier (Architect or Engineer) or jointly by the Owner and Contractor if there is no certifier.
• Proof of Publication: Written confirmation and PDF copy of the electronic publication of Form 9, establishing the start of the 60-day lien period.
• Statutory Declaration Sign-off: Notarized CCDC 9A form signed by an authorized officer of the contracting company.
• Deficiency Holdback Agreement: Signed acknowledgement of the value of the deficiency holdback (typically calculated at 200% of the estimated cost to complete).
• WSIB Clearance Certificate: Valid clearance certificate showing active, in-good-standing status on the date of holdback payment.
• Record Retention: All closeout certificates, proof of publication, and Form 6 notices must be archived and retained for a minimum of seven years.

Official Verification Sources

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