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A Subcontractor's Lien Rights in Ontario When the General Contractor Doesn't Pay You

The general contractor won't pay you — but you can still lien the owner's property. Learn how Ontario construction lien rights work for subcontractors.

Litigation6 min readTSLBy the Treadstone Law team · OntarioUpdated 2026-07
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Key takeaways
  • A construction lien is a claim registered against the title of the property where you performed work or supplied materials.
  • Lien rights are unusually unforgiving on timing.
  • Ontario's Construction Act requires the party paying on a project (often the owner, and sometimes a contractor paying a sub) to hold back a percentage of what is owed until the lien…

You did the work. You supplied the materials. The general contractor got paid by the property owner — and then never passed your share along. It feels like you have no direct relationship with the owner, so surely there is nothing you can do about it?

Actually, Ontario's Construction Act exists precisely for this situation. A subcontractor who has not been paid can, in many circumstances, register a construction lien against the owner's property — even without a direct contract with that owner. Here is how subcontractor lien rights actually work, and the deadlines that make or break them.

How a Lien Protects You When You Only Contracted With the General Contractor

A construction lien is a claim registered against the title of the property where you performed work or supplied materials. It does not require you to have contracted directly with the owner. The lien attaches because you improved the property — the chain of subcontracts underneath the general contractor does not break your right to lien.

In practical terms, a lien:

What a Lien Does Not Do

This is the most common misunderstanding in construction disputes: a lien does not pay you. It secures your claim against the property, but you still have to pursue and prove the underlying debt — often through a lien action, or a separate action for the money owed — to actually collect. Think of a lien as leverage and priority, not a cheque.

The Two Deadlines That Control Everything

Lien rights are unusually unforgiving on timing. Miss either deadline below and you generally lose the lien remedy entirely (your contract claim for the underlying debt may still survive separately, subject to Ontario's general limitation period).

StepDeadlineWhat happens if you miss it
Preserve the lien60 days from the relevant trigger date (e.g., last supply of services/materials, contract completion, or termination)You generally lose the right to lien at all
Perfect the lien90 days, running from the last day the lien could have been preservedThe preserved lien expires and the lien claim generally cannot proceed

"Preserving" a lien means registering it against title (or, in some cases, giving written notice) within the 60-day window. "Perfecting" means starting the court action and registering a certificate of action within the 90-day window that follows. These figures are current as of mid-2026 — confirm them before relying on them, since they are strict statutory deadlines and getting either one wrong can be fatal to the claim, so this is not a process to handle without advice if real money is on the line.

Understanding the Statutory Holdback

Ontario's Construction Act requires the party paying on a project (often the owner, and sometimes a contractor paying a sub) to hold back a percentage of what is owed until the lien period has expired. As of mid-2026, the statutory holdback is 10% of the price of the services or materials supplied — verify the current figure before relying on it, since the rules around when holdback must be released have also changed in recent years and now include a mandatory annual release mechanism on longer projects. The holdback exists specifically to protect unpaid subcontractors and suppliers like you, giving lien claimants a fund to pursue even if the general contractor has already spent the rest of what it was paid.

Prompt Payment and Adjudication — A Faster Option

Separately from the lien remedy, the Construction Act's prompt payment and adjudication regime sets legislated timelines for paying valid invoices and offers a comparatively fast, interim-binding dispute process that can run during a project — without waiting for a full lawsuit to conclude. If your dispute is specifically about a slow-paying general contractor rather than a total refusal to pay, adjudication may resolve the immediate cash-flow problem faster than a lien action, while a lien claim (if the deadlines still permit it) protects your position in the background.

A Practical Checklist for a Subcontractor Who Hasn't Been Paid

Frequently asked questions

Do I need a direct contract with the property owner to file a lien?

No. Lien rights extend down the contractual chain — a subcontractor or supplier who improved the property can generally lien it even though their contract was only with the general contractor, not the owner.

What happens if I miss the 60-day deadline?

You generally lose the right to register a lien for that supply of services or materials. You may still be able to pursue the general contractor directly for the unpaid debt through an ordinary lawsuit, subject to Ontario's general limitation period, but you lose the property-backed security a lien provides.

Does registering a lien guarantee I get paid?

No. A lien only secures your claim against the property — you still need to prove the debt, typically through a lien action or related court process, to actually collect. Many lien claims are resolved through negotiation once the lien creates enough pressure, but that is not guaranteed.

Can the owner just pay off the lien and make it go away?

An owner can often have a lien removed from title by posting security (such as paying money into court) rather than settling your claim outright. This does not end your underlying claim — it just changes where your security sits while the dispute continues.

This article is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.

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