Ontario Construction News staff writer
Ontario’s construction industry faces a major year of change in 2026, with new laws and regulations set to affect contracts, site safety, hiring practices, certification processes and compliance across the province.
Here are some of the highlights:
Faster cash flow through annual holdbacks
The Construction Act has been amended to require owners to release the standard 10 per cent holdback annually on contracts signed after Jan. 1, 2026. Previously, holdbacks were typically paid only at the end of multi-year projects. Industry representatives say the change will improve cash flow for sub-contractors and smaller operators, reducing the financial burden of holding back large sums for extended periods.
The 2026 amendments also modernize adjudication, bonding, lien, and trust procedures, along with statutory notices affecting payment and dispute resolution. Companies should review contracts and administrative practices to ensure compliance.
Safety upgrades: AEDs and OHSA enforcement
Under the Working for Workers Seven Act, automated external defibrillators (AEDs) are now mandatory on projects that employ 20 or more workers regularly and are expected to last at least three months. Sites must ensure the AED is clearly marked and accessible, with at least one trained worker present at all times.
Additional Occupational Health and Safety Act (OHSA) changes grant inspectors the authority to issue administrative monetary penalties for contraventions, increasing enforcement tools and the potential cost of non-compliance.
Other safety-related updates include enhanced personal protective equipment (PPE) requirements, crane duty documentation, and mandatory washroom facility recordkeeping on larger sites. Employers must also provide menstrual products where required, and definitions around harassment have been clarified, including rules for virtual joint health and safety committee meetings.
Hiring transparency and AI disclosure
New rules under the Employment Standards Act require employers with 25 or more staff to include expected compensation or a pay range in all public job postings, capped at a $50,000 spread. Companies must also disclose if artificial intelligence is used for resume screening or interviews.
An as-of-right certification process will allow skilled workers from other provinces to have credentials recognized in Ontario within 10 business days, easing labour shortages during a busy 2026 project pipeline.
Skilled Trades Ontario exams move in-house
Starting Feb. 1, 2026, Skilled Trades Ontario will administer certifying exams in-house rather than through third-party centres. Officials say this is intended to professionalize the trades and reduce the backlog of workers awaiting Red Seal or Certificate of Qualification exams.
For companies bidding on public sector projects, new regulations recognize accredited health and safety management systems, such as COR or ISO, in procurement evaluations. Contractors will need to ensure their systems meet the updated requirements to remain competitive.
Industry analysts say the 2026 changes reflect a broader effort to improve financial flow, strengthen safety enforcement, increase transparency, professionalize the workforce, and streamline compliance across Ontario’s construction sector.
