Ontario has implemented significant amendments to the Construction Act and its regulations effective January 1, 2026, aimed at accelerating cash flow, clarifying rights, and refining adjudication and trust mechanisms across the construction pyramid. This article condenses the principal changes and their practical consequences for construction practitioners in Ontario.
Legislative Background and Coming-Into-Force
Following the 2018 modernization of the Construction Act, representatives of the Council of Ontario Construction Associations met with the Attorney General Doug Downey in 2022 to discuss industry experience under the amended legislation. At the Attorney General’s request, a report prepared by COCA counsel Glenn Ackerley was submitted in July 2023.
The Attorney General subsequently commissioned a further review in 2024, led by Duncan Glaholt, which culminated in a report released on October 30, 2024, containing 44 recommendations, including the introduction of mandatory annual holdback release.
The government introduced amendments through Bill 216, the Building Ontario For You Act (Budget Measures), 2024, which received Royal Assent on November 6, 2024. Additional refinements followed in Bill 60, the Fighting Delays, Building Faster Act, which received Royal Assent on November 27, 2025. The Construction Act and related regulatory amendments came into force on January 1, 2026.