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Trust funds and holdback review
Trace holdback and project money, and list the questions for your lawyer.
- Version
- 2026.1
- Last updated
- October 24, 2026
Prepared by ArtBuild to help you organise your paperwork. It is general information, not legal advice, and it has not been reviewed by a lawyer. Check the rules for your province or territory before you act.
Part of the General Contractor Bankruptcy Recovery Kit: start with its guide, and download the whole kit there.
Download editable Word (.docx)
Separate the money and the legal questions
Use this worksheet to trace project funds and retained amounts when a general contractor enters insolvency. A bookkeeping label such as trust or holdback does not establish ownership, priority or a recoverable claim. Do not combine a possible claim against a fund with the same debt against the estate without review.
- Project and jurisdiction
- Owner and contract chain
- Public or private project; residential or commercial
- Debtor and proceeding reference
- Contract holdback clause
- Ledger snapshot date
| Amount / fund | Who holds it | Evidence | Already in ledger? |
|---|---|---|---|
| Retained holdback CAD [amount] | [enter] | [certificate / statement] | [yes/no/unknown] |
| Owner payment CAD [amount] | [enter] | [remittance / bank record] | [enter] |
| Project receipt CAD [amount] | [enter] | [source and allocation] | [enter] |
| Other identified fund | [enter] | [record] | [enter] |
Preserve lawful records of receipt, allocation and use. Do not access another party's banking records without authorization.
Prepare the legal review
- Identify the exact statutory or contractual basis being investigated, with jurisdiction and version.
- Distinguish money still held by the owner from money received by the contractor.
- Trace each amount to the project and record any commingling or missing information as uncertainty.
- Provide trust, holdback, security and insolvency documents together to the reviewer.
- Ask how the proceeding and any court order affect preservation, enforcement or recovery.
Fictional double-counting check
The account shows CAD 10,000 outstanding, including CAD 1,500 retained holdback. The starting reconciliation remains CAD 10,000, not CAD 11,500. Whether CAD 1,500 is payable by another person or from an identified fund is a separate question; record recoveries against the same debt to avoid duplicate collection.
- Official source and provision for review
- Unresolved tracing evidence
- Reviewer identity and jurisdiction
- Review conclusion and limits
- Action, responsible person and confirmed date
No trust, lien, priority or holdback entitlement is determined by this worksheet.
Before you act: this document is general information prepared by ArtBuild to help you organise facts and paperwork. It is not legal advice and has not been reviewed by a lawyer for your situation. Rules differ by province and territory and change over time. Check the official source for your project, and for deadlines, liens, court or insolvency steps, speak with a lawyer licensed where the project is located.