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ARTICLE · 09 AUGUST 2019

Feds Pass Prompt Payment Legislation For Federal Construction Projects

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Types of work that fall under the Act include any kind of work that will improve the value, productivity, or useful life of a building.

CanadaReal Estate and Construction
Jonathan Martin
Jonathan Martin
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On June 21, 2019, the Canadian Parliament passed the Federal Prompt Payment for Construction Work Act (the "Act"). Passed as part of the larger federal budget Bill C-97, the Act will apply to construction projects on lands or immovables owned by the Federal Government, with the exception of leased federal lands or immovables, where the construction project is being undertaken by the lessor. Types of work that fall under the Act include any kind of work that will improve the value, productivity, or useful life of a building. The Act, however, excludes maintenance or repair work performed to prevent normal deterioration or to maintain the normal, functional state of the real property or immovable.

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