The Civil Code of Quebec allows the owner to withhold from the construction contract price an amount sufficient to pay the claims of workers and other persons who may assert a legal hypothec on the property. This withholding can be made at the time of payment to the contractor and it remains valid until the contractor has provided the owner with a receipt for these claims. Therefore, the owner should keep an up-to-date and comprehensive list of the persons who have notified him or her of their contracts. This list will be used to verify the receipts received. For each payment, it would be prudent to check if the contractor has receipts for the previous payments. The contractor can also provide sufficient security to guarantee these claims.
The wording of receipts, whether partial or total, as well as the capacity of the signatories, varies depending on the type of contracts with the contractor or subcontractors. Tailoring the wording to the various situations provides better protection for the owner.
It is therefore important to consult a notary specialized in drafting construction receipts because: