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ARTICLE · 10 JULY 2024

Federal Prompt Payment For Construction Work Act

Reynolds Mirth Richards & Farmer
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The Act is similar to Alberta's Prompt Payment and Construction Lien Act, in that it establishes a payment regime for construction projects and an adjudication process for disputes. The Act applies to His Majesty...

CanadaReal Estate and Construction
Jenna Chamberlain
Jenna Chamberlain

The new Federal Prompt Payment for Construction Work Act came into force on December 9, 2023.

The Act is similar to Alberta's Prompt Payment and Construction Lien Act, in that it establishes a payment regime for construction projects and an adjudication process for disputes.

The Act applies to His Majesty, any service provider, and any contractor or subcontractor that is to perform construction work for the purposes of a construction project located in Canada with respect to federal real property or federal immovables.

Interestingly, the Act allows for the Governor in Council to designate any province that has already enacted similar prompt payment and adjudication legislation.

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