Unpaid on a Construction Project in Ontario? Lien Deadlines, Holdback and the 2026 Changes Explained

If you have done work or supplied materials on a construction or renovation project in Ontario and have not been paid, the clock is already running. Ontario's Construction Act gives unpaid contractors, subcontractors and suppliers a powerful tool called a construction lien, but only if strict deadlines are met. Homeowners and owners also need to understand liens, because one can be registered against a property even when the owner has paid their own contractor. Here is a plain-language overview.

What is a construction lien?

A construction lien is a legal claim registered against the title of a property for unpaid work or materials that improved it. It gives the person who was not paid a form of security: the claim is attached to the property itself, not just to the person who hired them. People who can generally claim a lien include contractors, subcontractors, suppliers and workers who supplied services or materials to the project.

The holdback: why owners keep 10%

The Act requires an owner to keep back 10% of the price of the work as it is paid for. This is called the holdback. It exists so that there is a pool of money available to people lower down the payment chain if a contractor does not pay them. An owner who ignores the holdback rules can end up paying part of the price twice.

The two deadlines that matter most

Lien rights are lost if two time limits are missed, and courts treat them strictly. Agreements between the parties to “hold off” or ongoing negotiations do not stop them from running.

The first step is preserving the lien by registering a claim for lien on the property's title. In general, this must be done within 60 days after the last supply of services or materials to the improvement. Where a certificate of substantial performance has been published for a contract, the 60 days are generally counted from the date of that publication instead. Because the start date depends on your role and the project, it should be confirmed for your own situation.

The second step is perfecting the lien. This means starting a court action and registering a certificate of action on title. In general, this must be done within 90 days after the last day on which the lien could have been preserved. That is why people often describe the total window as roughly 150 days from the trigger date. A lien that is preserved but never perfected expires.

Changes that took effect on January 1, 2026

Amendments to the Construction Act came into force on January 1, 2026 through Bill 216 and Bill 60. Law firm summaries of the changes describe several points that are worth knowing:

Annual holdback release. Owners must now publish a notice of annual release of holdback within 14 days of each one-year anniversary of the contract. After the notice is published, there is a 60-day waiting period, followed by a 14-day window in which the accrued holdback is to be released, unless liens have been preserved or perfected. For contracts that already existed before 2026, the first annual release is delayed until the second anniversary after January 1, 2026.

Holdback release is separate from lien expiry. An earlier version of the reforms would have tied the annual release to the expiry of lien rights. That link was removed before the changes took effect, so the ordinary lien deadlines described above were left in place.

Notice of termination. When a contract is terminated, a notice of termination must be published within seven days, and the date of termination is deemed to be the date the notice is published. That date can affect how lien deadlines are calculated.

Prompt payment and what to do if you are unpaid

Alongside the lien system, the Act contains prompt payment rules. In general, once an owner receives a proper invoice, payment is due within 28 days, and disputes can be raised through a notice of non-payment and, if needed, a fast adjudication process. These rules were extended by the 2026 amendments in some respects, including requirements about what makes an invoice “proper”.

If you have not been paid, a sensible first step is to write down the date work or supply last occurred, and then calendar the 60-day and 90-day dates right away. Gather your contract, invoices, delivery slips and correspondence. Registering a lien is done through the Ontario land registry system, and lien claims have formal content requirements, so mistakes are common when people do it alone.

If a lien is registered against your property

Owners who find a lien on title can sometimes have it removed by paying the amount claimed into court or posting security, or by showing the lien was not properly preserved or perfected in time. Because a lien can make it hard to sell or refinance, acting quickly is usually important.

Bottom line

Construction liens can be effective, but they reward people who track dates carefully. Preserve within 60 days, perfect within the following 90, and keep in mind that the rules on holdback release changed in 2026. Ken Wise & Associates practises in construction lien and payment disputes.

This article is general information only and is not legal advice. Reading it does not create a solicitor-client relationship. Every situation turns on its own facts — speak with a qualified Ontario lawyer or licensed paralegal about yours.