What happens to holdback when my Ontario deck is finished?

Under the Construction Act, an owner is generally required to hold back 10 per cent of each payment to a contractor on an improvement, and a deck is an improvement under that Act. Get advice for your specific situation, because how and when that holdback is released depends on the details of your contract and the Act's timelines.

The general structure under the Act works like this. A contractor's lien rights expire at the end of a 60-day period tied to publication of a certificate of substantial performance, or to completion, abandonment or termination of the contract. An owner pays a proper invoice no later than 28 days after receiving it. Because the exact steps depend on whether substantial performance has been published, whether any liens have been registered, and the terms of your contract, speak with a lawyer or the Construction Act's own guidance before releasing any holdback funds.

A few practical points worth knowing before you get to that stage:

• The Consumer Protection Act, 2002 applies if you signed the contract at home rather than at the supplier's place of business. That makes it a direct agreement, and you had 10 days to cancel after receiving your written copy. It also means the contractor cannot charge more than 10 per cent above any estimate included in the agreement.
• We found no statutory cap on deposits under Ontario law, so the deposit amount is a matter of negotiation and your contract terms.
• Subcontractors the contractor retains are not covered by the home renovation exemption from WSIB coverage requirements; they need their own WSIB coverage, which is separate from the holdback question but worth confirming before work starts.

Who applies for the permit and books the inspections

The City of Ottawa requires three inspections for a permitted deck: Excavation and Foundations before backfill on in-situ piers and pads, Framing at completion of structural framing and guards, and a Final inspection at completion of framing, stairs and guards. Inspections must be booked 48 hours in advance. Your contract should name, in plain language, who is responsible for applying for the permit and for booking each of the three inspections.

Ask the builder, before you sign, to show you the permit application receipt and to confirm in writing exactly who will book each City inspection and at what stage of the build.