Construction planning tool
Holdback & payment date calculator
Enter an invoice and a contract date. Get the 10% holdback, the amount payable, every prompt payment deadline under Ontario's Construction Act, and the next annual holdback release.
Holdback on this invoice
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Calendar days. If a deadline falls on a weekend or holiday, check your contract and the Act. General information, not legal advice.
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The rules behind it
- Holdback: 10% of the value of work is retained by the owner.
- Deficient invoice: the owner has 7 days from receipt to say in writing what's missing, or the invoice is deemed proper.
- Notice of non-payment: within 14 days of receiving a proper invoice.
- Payment: within 28 days of receiving a proper invoice.
- Subcontractors: within 7 days of the contractor being paid, and no later than 35 days after the invoice was given to the owner.
- Annual holdback release (since January 1, 2026): on each contract anniversary. The owner publishes notice within 14 days after the anniversary and pays between 60 and 74 days after publishing, unless a lien has been preserved. Contracts signed before 2026 start with the second anniversary after January 1, 2026. Contractors pass holdback down within 14 days.
Holdback is shown on the pre-tax amount; confirm your contract's treatment of HST. Read the full guide: Ontario's Construction Act for owners.
FAQ
About this calculator.
How is holdback calculated in Ontario?
The owner retains 10% of the value of the work as holdback under the Construction Act. On an invoice of $250,000 before HST, that is $25,000 held back and $225,000 payable.
When is holdback released in Ontario?
Since January 1, 2026, accrued holdback must be released annually on each contract anniversary, as well as at the end of the job, unless a lien has been preserved.
Is the holdback calculator free?
Yes. The calculator is free and runs in your browser. To email or download the PDF report, we ask for your email address.