Industry guide

Construction contractors: holdbacks, job costing and year end

By Gurjinder Dhillon, CPA, CGA, MBA,Published December 7, 2026,6 min read

Construction business owner and CPA reviewing job costing and holdbacks

Quick answer

Construction contractors should track holdbacks by job, keep work in progress reporting current and coordinate GST and year end treatment with the underlying contract terms and accounting records.

Key takeaways

Holdbacks should be visible as separate receivables.
Job costing helps explain profitability before year end.
Contract terms matter for timing and documentation.

Keep holdbacks separate

Holding back a percentage of completed work affects cash flow and should not disappear inside a general receivable balance.

Use job costing as a management tool

Timely labour, material and subcontractor cost tracking gives owners a better view of project performance.

Prepare before the year end rush

Reconcile job schedules and contract documentation early, particularly when a lender or surety will rely on the statements.

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Sources & review

Reviewed by Gurjinder Dhillon, CPA, CGA, MBA. Check current primary guidance before acting on filing dates or tax questions: Canada Revenue Agency (opens in new tab) and WCB Alberta (opens in new tab).

Last updated December 7, 2026