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On January 1, 2026, long-anticipated amendments to the Construction Act, R.S.O. 1990 c. C.30 ("Construction Act") will come into effect. One anticipated amendment, however, the annual expiration of lien rights, will not be included.
The Ontario government appears to have backtracked from a central element of the originally proposed amendments. The initial proposal called for a new regime wherein holdback would be released annually, and lien rights for services and materials included in the release would automatically expire 60 days thereafter. The amendments being implemented on January 1 do not include the annual lien expiration.
The Building Ontario For You Act (Budget Measures), 2024, S.O. 2024, c. 20 - Bill 216("Building for You")received Royal Assent on November 6, 2024. Building For You introduced a number of important amendments to the Construction Act, includinga mandatory annual release of holdback for all construction projects, and with it, the annual expiration of lien rights for services and materials included in the release.
On November 27, 2025, the Fighting Delays, Building Faster Act – Bill 60 ("Building Faster")received Royal Assent. Building Faster introduced amendments to the not-yet-in-force Building For You, including the elimination of the annual expiration of the lien period.
Building For You and Building Faster will both come into effect on January 1, 2026. When they do, the Construction Act will mandate the annual release of holdback, but the lien expiration periods will be unchanged from the regime.
Stay tuned for a broad overview of the changes to expect on January 1.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
