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Construction Act: How the 2026 Updates Impact You and Your Contracts

This article appeared in its original form in the December 18, 2025 edition of the OAA News and continues to be updated with new information.

Following a 2024 review, significant amendments to the Construction Act and its associated regulations were brought about via Bill 216, the Building Ontario for You Act which will be brought into force on January 1, 2026. The amendments introduce:

  • mandatory annual release of holdback;
  • broadened access to adjudication;
  • deemed lien for supply of design services where an “improvement” is not yet started;
  • invoices becoming deemed proper invoices; and
  • changes to definitions of proper (versus improper) invoices and price (versus contract price).

Coupled with this, the provincial government recently passed Bill 60, Fighting Delays, Building Faster Act, which further amends the Construction Act by creating adjustments to some amendments previously introduced via Bill 216. Bill 60 makes significant changes to the rules governing holdback—the release of annual holdback cannot be tied to lien expiry. These changes took effect on November 27, 2025, when Bill 60 received Royal Assent.

To read the OAA’s statement on Bill 60, click here.

 

Impacts on the Design and Construction Industry: Consult Legal Counsel

OAA Practices, design professionals, clients and construction teams should meet with their legal counsel to assess impacts on both professional services contracts currently in place, as well as construction delivery contracts.

 

Updates to OAA Resources

 The Association is working to update guidance documents and resources pertaining to the Construction Act, including the Practice Tip 10 Series, as well as the OAA Contract Suite 2021 and associated guides, to reflect the legislative changes.

With the support of legal counsel, the following resources have been updated:

  • Practice Tip PT.10.0Construction Act / Construction Lien Act;
  • Practice Tip PT.10.2Construction Act– Procedures for the Release of Statutory Lien Holdbacks;
  • Practice Tip PT.10.3Construction Act–Prompt Payment;
  • Practice Tip PT.10.4,  Construction Act–OAA Members Acting as Adjudicators; and
  • Practice Tip PT. 10.5Construction Act–Interim Adjudication.

Members are encouraged to check back regularly for additional updates as they become available.

 

Other Third-Party Resources

Various groups are offering resources that explore the new Construction Act. These are shared below for informational purposes and may not necessarily reflect the views of the OAA or its governing Council.

 

Webinars

In-person and virtual learning opportunities like webinars related to the new Construction Act may be eligible for Structured Learning hours under the OAA's Continuing Education (ConEd) Program. To see a list of currently available opportunities, click here.

As part of the OAA Continuing Education (ConEd) Webinar Series, experts from Glaholt Bowles hosted a January 2026 session that examined aspects of the Act. You can watch it on the Association's YouTube channel.

Other webinars that you can watch on-demand include:

"Amendments to Ontario's Construction Act" (Osler)

"Construction Act Amendments: What You Need To Know Now" (McMillan LP)

 

Articles

Many construction law firms are authoring pieces that explore the changes brought about by the Construction Act. Click the links below to be brought to external sites to learn more: 

Ontario Passes Amendments to Construction Act Following Independent Review (McMillan LLP) November 12, 2024

Holdback Release Decoupled from Lien Expiry: What Bill 60 Means for Industry Stakeholders” (Glaholt Bowles LLP) December 2, 2025

Ontario announces January 1, 2026, effective date for Construction Act changes” (Gowling WLG) December 4, 2025

New Year, New Rules: Ontario’s Construction Act Amendments Are Here!” (McMillan LLP) December 9, 2025

Ontario’s Bill 60: Key Changes to the Construction Act Arriving in 2026” (Aird & Berlis LLP) December 9, 2025

Ontario Scraps Annual Expiration of Lien Rights (Torkin Manes LLP) December 9, 2025

Bill 60 Becomes Law: Updated on Fighting Delays, Building Faster Act, 2025” (McMillan LLP) December 10, 2025

"Major Amendments to Ontario's Construction Act Coming Jan 1: What Industry Stakeholders Need to Know" (Glaholt Bowles LLP) December 17, 2025

"Ontario's Amendments to the Construction Act Takes Effect January 1, 2026" (Fasken) December 18, 2025

"Construction Act Changes in Ontario are (Finally) Here: Annual Holdback Release and How Will it Impact Your Project" (Norton Rose Fulbright) December 30, 2025

"Welcome to 2026: Critical Amendments to Ontario’s Construction Act Have Arrived" (DLA Piper) January 6, 2026

"Changes to Ontario’s Construction Act Effective January 1, 2026" (BLG) January 7, 2026

"Ontario's Construction Act" (Beale & Co.) January 23, 2026

"Construction Act Makeover, Continued(Norton Rose Fulbright) January 23, 2026

"Amendments to Ontario's Construction Act Now in Force" (Blakes) January 23, 2026

"Ontario’s Construction Act Amendments Now in Force: Key Changes to the Annual Holdback Regime and Related Updates" (Dentons) February 17, 2026

"Updates to Prompt Payment Legislation in Ontario, British Columbia, and Alberta" (Bennett Jones) February 20, 2026

"Ontario Construction Act Amendments Now in Effect" (Osler) March 2, 2026

"Adjudication in Ontario: Striking the Right Balance Between Process and Substance" (Beale & Co) April 20, 2026



 

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