The federal government introduced the new legislative framework
in the House of Commons on April 8, 2019, as part of its omnibus
budget bill (Division 26 of Part 4 of Bill C-97).
The proposed prompt payment legislation will directly influence
commercial arrangements in the construction industry. It addresses:
the frequency and formal requirements for invoicing construction
work; payment deadlines between parties to the construction
contract; notice requirements where a party declines to provide
payment pursuant to an invoice; and an adjudication model for
disputes arising from non-payment.
Current Status of the Act
The bill is currently at the committee stage. The Standing
Senate Committee on Banking, Trade and Commerce is also studying
the prompt payment portions of the bill in advance of it coming
before the Senate.
