Ontario’s Construction Act Changes in 2026: A Homeowner’s Guide to Deadlines, Invoices & Liens
Last updated: July 2026
Quick Answer
Ontario’s Construction Act changed on January 1, 2026 through amendments under Bill 216 and Bill 60. For a homeowner building or renovating, three changes matter most. First, an invoice from your contractor can now be treated as a “proper invoice” unless you object in writing within 7 days, which starts a 28-day period to pay. Second, on longer projects, the annual release of the 10% holdback is now mandatory and is no longer tied to when liens expire. Third, the core lien deadlines are unchanged: a contractor or subcontractor typically has 60 days to register (preserve) a lien on your property and 90 more days to enforce (perfect) it. An unpaid subcontractor may register a lien on your home even if you paid your general contractor in full. Therefore, retaining the 10% statutory holdback typically remains your main protection.
Planning a custom build, finishing a basement, or taking on a major renovation is exciting. It can also be the first time you deal with the rules that decide who gets paid on a construction project in Ontario. Those rules changed on January 1, 2026, and if you own the home, some of the new deadlines apply directly to you.
But rest assured, the system is built to protect you as much as anyone else. Once you understand a few key dates and one simple habit, you can keep your project on track and your title clean.
This guide covers what changed, what stayed the same, and how to avoid the outcome that most homeowners worry about: paying for the same work twice. If you are buying or renovating a home in Ontario, these rules are worth knowing before the first invoice arrives.
Quick Start: Pick Your Path
If you are about to start a build or renovation, your focus is prevention. Understand the 10% holdback and read your contract’s payment terms before money changes hands.
If you are mid-project and invoices are arriving, your focus is timing. Know the seven-day window to question an invoice before the payment clock starts.
If a lien is already registered against your property, your focus is response. Learn the difference between removing and cancelling a lien, and get advice before a deadline passes. The diagram below maps each path to a first step.
What Changed on January 1, 2026
On January 1, 2026, amendments to Ontario’s Construction Act under Bill 216 and Bill 60 came into force. For homeowners, the key changes are a seven-day deadline to challenge a contractor’s invoice, a mandatory annual release of holdback on longer projects, and confirmation that liens no longer expire simply because holdback is released.
Ontario’s construction payment rules live in one statute: the Construction Act, R.S.O. 1990, c. C.30. It was renamed from the old “Construction Lien Act” in 2018 and governs liens, holdback, and the prompt payment timelines that keep money moving on a job.
Two laws reshaped it – Bill 216 (or the Building Ontario For You Act (Budget Measures), 2024) and Bill 60 (or the Fighting Delays, Building Faster Act, 2025). A new set of regulations, including O. Reg. 264/25, came into force alongside them.
Most updates target the construction industry, and disputes about them fall under civil litigation. A handful reach ordinary homeowners directly, which is what the rest of this guide covers.
The Rules Before and After January 1, 2026
Though a few rules shifted, the lien deadlines that most homeowners worry about stayed the same.
The biggest change is the seven-day invoice rule. The comparison below summarises what moved and what held steady.
| Rule | Before Jan 1, 2026 | Now (in force) |
|---|---|---|
| Proper invoice | An owner could question whether an invoice was complete later in the process. | You have 7 days to object in writing, or the invoice may be deemed a proper invoice. |
| Holdback release | Annual or phased release of the 10% holdback applied only if the contract allowed it and met a high threshold. | On longer projects, annual release of the 10% holdback is mandatory. |
| Holdback and liens | A proposal would have tied holdback release to an annual lien-expiry date. | Release is decoupled — liens do not expire simply because holdback is released. |
| Adjudication | Narrower access under the earlier rules (O. Reg. 306/18). | Wider access under O. Reg. 264/25; notice generally given within 90 days of completion, abandonment, or termination. |
What Counts As A Proper Invoice and Why Seven Days Now Matters
A proper invoice is an invoice from your contractor that meets the requirements set out in the Construction Act. As of January 1, 2026, if you do not object in writing within seven days, an invoice may be deemed a proper invoice even if it was incomplete, which starts a 28-day deadline for you to pay.
In plain terms, the invoice starts Ontario’s prompt payment timeline. Once a proper invoice is delivered, an owner typically has 28 days to pay the contractor, or to deliver a formal “notice of non-payment” within 14 days explaining what is withheld and why.
The seven-day rule shifts the job of reviewing invoices onto you, the owner. If something looks wrong, say so in writing quickly and state what needs to be fixed.
Keeping records and reviewing each invoice promptly is usually enough. If a genuine dispute over a contractor’s invoice develops, acting inside these windows helps protect your position.
When A Subcontractor Can Lien Your Home
Yes. A subcontractor or supplier who was not paid can register a construction lien against your property even if you paid your general contractor in full. The 10% statutory holdback is typically what protects you from paying twice for the same work.
A construction lien is a legal claim that a contractor, subcontractor, or supplier can register against the title to your property when they have not been paid for work or materials that improved it. It does not mean you did anything wrong; it is simply how the law makes sure everyone who worked on your project gets paid.
Here’s an example of a scenario you want to avoid. You pay your general contractor in full, the contractor fails to pay a subcontractor, and that subcontractor registers a lien on your home. You could end up covering the shortfall.
The holdback is your protection. The Construction Act requires you to retain 10% of each payment as work is done, and that retained money typically stays available to cover subcontractors or suppliers who have not been paid. Do not release it early just because the work looks finished. If you want to understand how a party can register a construction lien, or how to respond if one appears on your title, the rules are strict and time-sensitive.
Your Deadline Roadmap from First Invoice to Lien Expiry
Deadlines under the Construction Act run on separate timelines and can move quickly. Here is the sequence a typical project follows.
First, your contractor delivers a proper invoice. You then have seven days to object in writing. If you do not, the payment clock starts. You generally have 28 days to pay, or you must deliver a notice of non-payment within 14 days.
Separately, the lien clock runs on its own trigger. A contractor or subcontractor typically has 60 days to preserve a lien (in other words, to register it against your title), measured from the earliest of substantial performance (the point at which the project is essentially ready to be used) or the completion, abandonment, or termination of the contract.
Preserving a lien is only the first step. To keep it alive, the claimant must perfect it within 90 days of the last day it could have been preserved, by starting a court action, up to 150 days in total. The timeline below lays out these steps in order.
If A Lien Is Already Registered On Your Title
Finding a lien on your property can be unsettling, but it is a manageable problem with clear options. The two main routes differ, and the wording matters.
Vacating a lien means removing it from your title, usually by paying money or posting security into court. The underlying claim continues, but your title is no longer clouded, which helps if you are trying to sell or refinance.
Discharging a lien means cancelling it entirely, which can happen by agreement, once the claim is resolved, or by court order.
Because the steps are procedural and the deadlines are strict, this is where advice pays off. Qasim Ali, Principal Lawyer at Nihang Law and the firm’s team handle construction lien disputes for owners across the GTA. Getting guidance early, before a perfection deadline passes, typically keeps your options open.
Common Mistakes Homeowners Make
Here are a few avoidable errors that most troubled homeowners run into.
- •Releasing the 10% holdback too early because the work looks done, before the lien deadlines have passed.
- •Ignoring an invoice for more than seven days, so a flawed invoice becomes a proper one by default.
- •Assuming small renovations are exempt, when the Act can apply to improvements to your property regardless of size.
- •Paying a contractor in full without any evidence that the subcontractors and suppliers were paid.
- •Treating a preserved lien as permanent, or a threatened lien as automatically valid, without checking the dates.
- •Waiting until a deadline is days away to get advice, when the paperwork takes time to prepare properly.
If a disagreement is heading toward a dispute with your contractor, addressing it early is usually easier than untangling it later.
Frequently Asked Questions
What changed about Ontario’s construction rules in 2026?
On January 1, 2026, amendments under Bill 216 and Bill 60 changed Ontario’s Construction Act. For homeowners, the main updates are a seven-day deadline to challenge a contractor’s invoice, a mandatory annual release of holdback on longer projects, and confirmation that liens do not expire when holdback is released.
Can a subcontractor put a lien on my house if I already paid my contractor?
Yes. A subcontractor or supplier who was not paid can register a lien against your property even if you paid your general contractor in full. Retaining the 10% statutory holdback and confirming subcontractors were paid before releasing it typically protects you from paying twice.
How long does a contractor have to file a lien on my property in Ontario?
A contractor or subcontractor typically has 60 days to preserve a lien by registering it on your title, measured from the earliest of substantial performance or the contract’s completion, abandonment, or termination. They then have 90 more days to perfect it through a court action.
Do I have to hold back 10% when I hire someone to renovate my home?
Ontario’s Construction Act generally requires owners to retain 10% of the value of the work as it is done. This statutory holdback stays available to pay unpaid subcontractors or suppliers, and releasing it too early can leave you exposed to a lien on your home.
What happens if I don’t respond to my contractor’s invoice within 7 days?
If you do not object in writing within seven days, an invoice can be deemed a proper invoice even if it was incomplete. That starts the prompt payment clock, and you typically have 28 days from the proper invoice to pay or to deliver a notice of non-payment.
Does the Construction Act apply to a small home renovation?
It generally can. The Construction Act applies to improvements to your property, and there is no blanket exemption based on size. In practice, lien and holdback issues arise more often on larger jobs, but the rules can still apply to modest renovations.
How do I get a construction lien removed from my house?
A lien can be vacated, meaning removed from your title by paying money or security into court, or discharged, meaning cancelled entirely by agreement or court order. Because deadlines are strict, getting advice early helps. A lawyer can also help you recover money you’re owed if a contractor left the job unfinished.
The 2026 changes reward homeowners who stay organised — those who review each invoice within seven days, hold back the required 10%, and watch the lien deadlines. Do those three things, and most problems never start.
Talk To A Construction Lien Lawyer Before A Deadline Passes
If a lien has appeared on your title, an invoice dispute is escalating, or you want a second opinion before a deadline, Nihang Law can help. Our full-service team serves homeowners across Toronto, Scarborough, Brampton, and the rest of the GTA.
Contact Nihang Law →
About the author
Qasim Ali
Principal Lawyer · Nihang Law Professional Corporation · Toronto & Scarborough, Ontario · Law Society of Ontario
Qasim Ali is the Principal Lawyer at Nihang Law Professional Corporation, serving clients across Toronto, Scarborough, and the broader Greater Toronto Area. He provides full-service legal representation across immigration, real estate, family law, criminal law, civil litigation, employment law, wills and estates, and business law.
Nihang Law is particularly recognized for its depth in immigration and real estate law — a combination that serves newcomers and growing families navigating both legal systems simultaneously.
Learn more about Qasim Ali →Sources & References
- •Construction Act, R.S.O. 1990, c. C.30 (Ontario e-Laws)
- •Fasken — Ontario’s Amendments to the Construction Act Take Effect January 1, 2026
- •WeirFoulds LLP — Ontario Construction Act Changes: What You Need to Know in 2026
- •Barriston Law — Construction Act Amendments (O. Reg. 264/25; 7-day and adjudication timelines)
- •Robins Appleby — Key Changes to Ontario’s Construction Act (Bill 216 and Bill 60)
- •Frontier Law — Ontario Prompt Payment Rules in 2026
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