Legal FAQs

Who is obliged to maintain a holdback under the Construction Lien Act?

Pursuant to Subsection 22 of the Construction Lien Act, each payer upon a contract or subcontract under which a lien may arise shall retain a holdback equal to 10 percent of the price of services or materials as they are actually supplied under the contract or subcontract until all liens that may be claimed against the holdback have expired as provided by Part V of the Act, or have been satisfied, discharged or provided for under Section 44 of the Act.

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