What is the statutory construction holdback percentage in Canada?

In most Canadian provinces and territories (Alberta, British Columbia, Ontario, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland & Labrador, Yukon, NWT, and Nunavut), the statutory construction holdback is 10%. Manitoba applies a 7.5% statutory holdback, Prince Edward Island applies 15% (or 20% on contracts under $15,000), and Quebec uses contractual retention rather than a fixed statutory percentage.

When is GST/HST payable on a construction holdback in Canada?

Under subsection 168(7) of the federal Excise Tax Act (ETA), GST/HST on a statutory or contractual construction holdback becomes payable on the earlier of the day the holdback is paid/released or the day the holdback period expires.

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Canadian Construction Holdback & Progress Claim Calculator

Instantly calculate statutory construction holdback (10%, 7.5% in Manitoba, 15%/20% in PEI, or contractual in Quebec), net progress draw payable, GST/HST timing under Excise Tax Act s. 168(7), accumulated holdback to date, and generate a clean Progress Claim PDF.

1. Province & Progress Draw Inputs

Project Province / Territory

Holdback / Retention Rate (%)

Alberta Special Rule: Precast/Ready-Mix Concrete Supply or Oil & Gas Well Site (90-day holdback period instead of 45 days)

Prompt Payment and Construction Lien Act (Alberta)

Alberta applies a 10% statutory holdback. Note the extended 90-day lien registration and holdback period for ready-mix/precast concrete work and oil & gas well sites. Progressive/annual holdback release applies to qualifying multi-year contracts over $10M.

Current Claim (Pre-Tax $)

Previously Billed ($)

Total Contract Value ($)

Progress Claim #

Claim Date

Substantial Perf. (Opt.)

Contractor, Client & Project Details (For PDF Certificate)

PROGRESS CLAIM & HOLDBACK CERTIFICATE · AB

Chinook Structural & Contracting Ltd.

CRA GST/HST No: 84920 1142 RT0001

Progress Draw #04

Claim Date: 2026-10-29

Jurisdiction: Alberta

Project / SiteFoothills Industrial Warehouse — Phase 2

Billed To (Owner / Payor)Bow River Developments Corp.

A. Current Progress Claim & Statutory Holdback Breakdown

Gross Work Completed This Period (Pre-Tax)	$85,000.00 CAD
Less: Statutory Holdback Retained (10%)	− $8,500.00 CAD
Net Progress Draw Payable Now (Pre-Tax)	$76,500.00 CAD
Add: GST (5%) on Payable Portion (ETA s.168(7))	+ $3,825.00 CAD
TOTAL PAYMENT DUE THIS CLAIM (INCL. TAX)	$80,325.00 CAD

B. Cumulative Contract & Holdback Summary To Date

Total Contract Value$450,000.00 CAD

Total Billed To Date (58.9%)$265,000.00 CAD

Remaining Unbilled$185,000.00 CAD

Prior Holdback Held$18,000.00 CAD

Accumulated Holdback To Date$26,500.00 CAD

Deferred Tax on This Holdback$425.00 CAD

CRA GST/HST Timing Rule (ETA s. 168(7)): Under subsection 168(7) of the federal Excise Tax Act, GST/HST on a statutory construction holdback becomes payable on the earlier of the day the holdback is paid/released or the day the holdback period expires.

Provincial Lien Window (Alberta): 45 days standard · 90 days for concrete & oil/gas well improvements.

Generated by Alberta Studio — Free Tools · albertastudio.devFor informational purposes only · Verify with current statute

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Disclaimer: Provided for informational and estimating purposes only. Does not constitute legal or tax advice. Always verify statutory holdback percentages, prompt payment timelines, and lien registration deadlines against current provincial legislation and your construction contract.