Holdbacks and construction liens for homeowners: roofing and siding jobs

In most Canadian provinces outside Quebec, a homeowner who hires a contractor for a roof or siding job is an "owner" under the provincial lien act, and the act requires the owner to keep back a percentage of each payment, the holdback, until the time for subcontractors, workers and suppliers to register a lien has passed. In Ontario (Construction Act) and British Columbia (Builders Lien Act) the holdback is 10%. If you keep the holdback and pay it out only after the lien period expires with no lien registered, your exposure to liens from unpaid subcontractors and suppliers is generally limited to that holdback; if you pay the contractor in full early and a supplier is not paid, you can end up paying twice. Quebec has no statutory holdback; instead, unpaid workers, subcontractors and suppliers can have a legal hypothec on the property, and the Civil Code lets the owner withhold amounts to cover those claims.

This guide is part of how to compare roofing quotes. It is general information, not legal advice; lien deadlines are strict, so contact a lawyer (or a notary in Quebec) if a lien is registered or threatened.

Why holdbacks exist

A roofing contractor may buy shingles on credit from a supplier and use subcontracted crews. If the contractor does not pay them, lien acts let those parties claim against the property that their materials and labour improved, by registering a lien on title. The holdback is a fund that protects them and, in return, caps the owner's liability.

Key rules in three provinces

	Ontario	British Columbia	Alberta
Statute	Construction Act	Builders Lien Act	Prompt Payment and Construction Lien Act
Holdback	10% of the price of services and materials supplied	10% of the greater of the value of work and materials provided or payments made	10% of the value of work done and materials furnished, retained for 60 days (s. 18)
Time to register a lien	Generally 60 days after the contract is completed, abandoned or terminated, or after publication of a certificate of substantial performance	45 days after a certificate of completion, or after the head contract is completed, abandoned or terminated	Generally 60 days after the last work or materials were supplied or the contract was abandoned; longer for concrete and oil and gas well work (s. 41)
When holdback can be paid	After the lien period expires with no liens preserved	After the 55-day holdback period expires with no claim filed	After the lien period expires
Small claims	—	No lien under $200	—

The BC and Alberta figures were checked against the Builders Lien Act on BC Laws and the Prompt Payment and Construction Lien Act published by Alberta King's Printer in October 2026. BC also requires a separate holdback account for larger contracts, but not for contracts under $100,000, so a typical house re-roof does not need one, although the holdback itself still applies. Ontario's 60-day period dates from the 2018 reforms of the old Construction Lien Act; confirm current deadlines on Ontario e-Laws. Other provinces, such as Manitoba, Saskatchewan and Nova Scotia, have their own builders' lien acts with their own percentages and deadlines.

Worked example: Ontario re-roof

Illustrative contract: $16,000 plus HST, completed 1 June, no certificate of substantial performance published.

Value with HST: $16,000 × 1.13 = $18,080.
Holdback at 10%: $1,808.
Deposit already paid: $3,000.
Payment at completion: $18,080 − $1,808 − $3,000 = $13,272.
Holdback released: after the 60-day lien period has passed (counting from completion; here, around the beginning of August), and after a title search shows no lien registered, pay $1,808.

The holdback calculator does this arithmetic and lets you add an amount withheld for deficiencies, for example a missing piece of flashing, as long as your contract allows it.

What counts as completion

Lien periods run from completion, abandonment or termination, or from a certificate where one is used. On home jobs, certificates are rare; the date the work was finished is what matters. Small later fixes do not usually restart the clock, but disputes over the completion date are common. Keep records: photos, the date the crew left, emails confirming completion.

Checking for liens before releasing the holdback

Liens are registered on title at the provincial land registry. Before paying the holdback:

Wait until the lien period has clearly expired.
Search title, or ask your lawyer to (a fee applies), to confirm no lien has been registered.
Ask the contractor for written confirmation that suppliers and subcontractors are paid, or statutory declarations where your province uses them.
Pay the holdback and get a receipt.

If a lien is registered, do not pay the holdback to the contractor without legal advice. Lien acts provide ways to vacate a lien by paying money into court or posting security, and the holdback is the usual source.

Quebec: legal hypothec instead of holdback

In Quebec, the Civil Code gives workers, subcontractors, suppliers of materials, architects and engineers who took part in the construction or renovation a legal hypothec on the immovable. Key points:

Those who did not contract directly with the owner (subcontractors and suppliers) must give the owner written notice of their contract (a dénonciation) for their hypothec to cover their work.
The hypothec exists without registration for 30 days after the end of the work; to keep it, the claimant must register a notice within that time and then take legal action within a set period.
The owner can withhold from payments to the contractor amounts sufficient to pay claims that could give rise to legal hypothecs, until the contractor shows they have been paid.

If you receive a dénonciation from a supplier or subcontractor, keep it and make sure that party is paid before or as you pay the contractor, for example by joint cheque or by obtaining a release. A notary or lawyer can help.

Holdback and deposits, tax and deficiencies

Deposits: in Ontario and BC the holdback is calculated on the value of work and materials, so a large deposit does not remove the obligation; keep deposits modest.
Tax: contracts should say how tax on the holdback amount is invoiced. See GST/HST on roofing.
Deficiencies: the holdback is not a deficiency fund. Separately agree in the contract that you can withhold an amount for incomplete or defective work. See what a roofing contract should include.

Common mistakes

Paying 100% on the day the crew leaves.
Paying the holdback after 30 days because the contractor asks.
Forgetting that the supplier, not the contractor, may be the one who registers the lien.
Not keeping proof of the completion date.
Ignoring a lien on title, which can delay a sale or refinancing.

FAQ

Does the holdback apply to small jobs?

The obligation in Ontario and BC applies to contracts generally; BC's small-contract exemption covers only the requirement to open a holdback account. Small repairs paid on completion still carry some lien risk.

My contractor says holdbacks are only for commercial jobs. Is that true?

No. Homeowners who contract for improvements are owners under the lien acts. Some prompt payment rules differ for homeowners, but the holdback concept still applies in the provinces discussed here.

What if the contractor won't start unless I waive the holdback?

Owners generally cannot contract out of statutory holdback obligations, and waiving it shifts the risk to you. Ask a lawyer before agreeing.

Sources

BC Laws — Builders Lien Act, sections 4, 5, 8 and 20
Ontario e-Laws — Construction Act
Alberta King's Printer — Prompt Payment and Construction Lien Act
LégisQuébec — Civil Code of Québec, legal hypothecs
Justice Laws Website — federal legislation index