Construction holdback disputes can quickly turn a successful project into a legal dispute. Under Ontario's Construction Act, holdbacks serve an important purpose. They help protect parties further down the construction chain by ensuring funds remain available to satisfy valid lien claims. However, once lien rights have expired or applicable statutory requirements have been met, those funds are not meant to remain frozen indefinitely.

Limitation periods related to construction contracts are essential to understand, whether it is a contract between a construction company and a contractor, municipality or business. In Ontario, these legal deadlines set the window for taking action and missing them can result in losing the right to pursue a claim altogether. Ensuring your contract reflects these timelines and protects your business if a dispute arises is a key reason to work with a construction lawyer. These are the basics of Ontario construction law limitation periods to consider.