The roofer asks for the balance when the truck leaves. You have also heard that Ontario homeowners should retain ten percent. A statutory holdback and a final-payment inspection are different matters. Discuss both before work begins, while the payment schedule can still be written clearly.
Ontario's Construction Act, section 22, requires a basic holdback of ten percent of supplied services or materials under a contract or subcontract where a lien may arise. Residential roofing can engage this system. The applicable payment and release rules need to be established for the actual contract; paying a contractor in full does not, by itself, resolve every possible claim farther down the supply chain.
The final invoice sits beside the walkthrough list. Pat has circled an unfinished flashing detail; the owner has circled ten percent. They are not circling the same problem. "We need to fix the flashing," Pat says. "And we need the payment account to explain that other line properly." Combining both into one unexplained withheld amount would make the next conversation harder.
What the Holdback Is Protecting
Picture a replacement involving the homeowner, a roofing company and a supplier. The homeowner sees the installed shingles and pays the roofing company. The supplier's payment position is not visible from the driveway. The statutory holdback serves potential lien claims connected with the improvement; it is not simply a bonus retained until the homeowner likes the cleanup.
That explains why two questions should appear separately in your file. Has the agreed work been completed acceptably? And when can the statutory holdback properly be released? A satisfactory walkthrough answers useful construction questions. It does not calculate the legal release date.
Nor is a deposit the same thing as a holdback. The deposit advances money toward work; a holdback retains part of the amount otherwise payable for supplied work. Our payment milestone guide explains the commercial schedule. The statutory requirements need to be accommodated within it.
Make the Arithmetic Visible
For a simplified example, assume a payment calculation contains $10,000 of services and materials to which the ten-percent basic holdback applies. The holdback component is $1,000. That example shows the percentage only. It does not settle taxes, prior payments, unsupplied materials, disputed extras or the amount legally due on your invoice.
Ask for a running statement that separates the value of work, approved changes, prior payments, the holdback and the proposed payment. If an invoice merely says balance due, you have to reconstruct those amounts yourself. It is easier to resolve a missing line than an unexplained disagreement over the entire bill.
A change order should enter that same account. Photograph-backed approval for unexpected decking work should identify the scope and price; it should not quietly change the agreed payment process.
The homeowner finds an old saved article with a tidy number of days. Mike looks at its date before its headline. "This is the bit we send to someone who follows the Act, not someone who remembers a job from years ago." The roof can be checked from its details; the release calculation needs its own evidence.
Four Different Payment Questions
Money advanced under the agreed contract schedule.
Deposit
Money advanced under the agreed contract schedule.
Progress payment
Payment assessed against supplied work and prior payments.
Statutory holdback
Required retention for potential lien claims where the Act applies.
Release
A separate legal check using the applicable contract and events.
Do Not Borrow a Release Date From an Old Article
The Act contains different completion, publication, lien and payment provisions, along with transition rules. Ontario has amended the framework, including changes taking effect in 2026. An old renovation leaflet or a neighbour's remembered number of days may not describe your contract.
Have an Ontario construction lawyer confirm the applicable release process and dates where needed. Give them the signed contract, its date, amendments, invoices, work dates, completion documentation and any lien notice. Ask what event starts the relevant period and what must be checked before money is released. Do not start counting from the day the bin disappeared simply because it is easy to remember.
They leave two separate tasks on the list: resolve the construction item, and confirm the lawful release basis. It is less satisfying than writing paid in full across the invoice that afternoon. It is also a much clearer record for everyone who has to read it later.
When the Work or Payment Is Disputed
Keep a workmanship dispute distinct from statutory retention. Retaining additional money, responding to a lien notice or terminating a contract can carry separate obligations and deadlines. Obtain advice on those decisions rather than inventing a larger holdback as negotiating pressure.
If the contractor has stopped attending, the immediate need may be protection of the unfinished roof. Arrange that safety work and preserve evidence while the contract position is reviewed. At final handover, keep the release basis with your payment records. A clear account should explain both where the money went and why the retained amount was released when it was.
