According to the Construction Law, holdback obligations are created to establish that the owner must maintain 10% of the contractor’s contract price. This mechanism created by Ontario’s provincial government ensures that subcontractors and other suppliers will be paid for the construction project.
Allowed forms of value retention:
- A letter of credit in the prescribed form
- A retention refund title was formulated in cash in the prescribed form.
- Any other form that may be prescribed
The law provides that redemption obligations come to an end when everyone who has worked on the project, including subcontractors, can no longer make a pledged claim against the property. That is when the warranty period concerning finishing retention has already exceeded 60 days after completing the project.
If you have just completed your construction project, if the Holdback process injured you, please contact us. We can assess your case and find your rights to appeal. Contact us today for more information – 416-221-2221