Effective January 1, 2026, significant amendments to
the Construction Act, R.S.O. 1990 c.
C.30 (the “Act”) are now in
effect. The key changes are highlighted below.
The Prompt Payment Rules Will be Triggered More Easily
Under the previous version of the legislation, the Prompt
Payment rules were triggered by the Contractor's delivery of
a “Proper Invoice” that meets the criteria set out in
the legislation. Where the Contractor failed to deliver a
“Proper Invoice”, the Prompt Payment rules did not
apply.
As of January 1, 2026, any
invoice delivered by a Contractor is deemed to be a
“Proper Invoice”, unless the Owner notifies the
Contractor within seven days of receiving the invoice that it is
not a Proper Invoice in accordance with the Act. This will give the
Contractor an opportunity to revise its invoice to bring it into
conformance with the requirements.
