Question 1

What is the construction holdback in Canada?

Accepted Answer

Most provinces require a 10% holdback from each progress payment, held for the lien period (60 days in Ontario, 55 days in BC, 45 days in Alberta) to protect subcontractors and suppliers.

Question 2

Is prompt payment legislation in effect?

Accepted Answer

Ontario's Construction Act Part I.1 mandates 28-day payment from invoice. The federal Prompt Payment for Construction Work Act applies to federal projects. Other provinces are considering similar legislation.

Question 3

Is WSIB/WCB clearance required?

Accepted Answer

Yes, general contractors should obtain WSIB (Ontario), WorkSafeBC (BC), or WCB (Alberta) clearance certificates from subcontractors, as the general contractor may be liable for premiums if not provided.

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