How much is really being held back per payment? Calculate your holdback amount (10% is standard under most Canadian lien legislation) and release schedule.
| Payment | Gross amount | Holdback | Net paid |
|---|
⚠️ The exact rate and release timeline depend on your contract and province. Always confirm exact terms in writing with your client.
Holdback is a percentage (typically 10% in most Canadian provinces, mandated by construction/builders lien legislation) that an owner withholds from each payment to a contractor until the end of the work. It protects against unresolved liens and guarantees proper completion of the contract.
Holdback is typically released after the lien period expires following substantial performance of the contract (commonly 45 to 60 days depending on the province), once no liens have been filed and the work has been accepted without major deficiencies.
10% is the standard rate under most Canadian construction/builders lien acts, but the exact rate and rules depend on your province and what's negotiated in the contract. Always check the holdback clause in your specific contract rather than assuming 10%.