This article was originally published in the Builder Bites Newsletter
by Building
Excellence (www.buildingexcellence.ca).
The second round of major revisions to Ontario’s
Construction Act came into force on Oct. 1, 2019, ushering in
statutory prompt payment provisions and mandatory adjudication.
Need for prompt payment
Although industry standard payment terms are 30 to 45 days,
actual payment regularly exceeds 70 days. These unsustainable
delays mandate a fresh approach.
The new process starts when the contractor gives the owner a
prescribed “proper invoice,” which includes many of the
details contractors already have in their invoices. Contractors
must render invoices every 30 days, unless otherwise agreed.
