Prompt payment arrived for Ontario's construction industry
October 1, 2019. The final stage of implementation of the changes
introduced the Construction Lien Amendment Act, 2017, came
into force on October 1, 2019. Subject to a grandfathering period
for existing contracts and contracts for which the procurement
process was begun prior to October 1, the new prompt payment regime
set out in Part I.1 of the renamed Construction Act
(Ontario), will apply to all construction contracts entered into
after October 1, 2019. Both payors and payees must create the
systems and procedures now in order to be in a position to comply
with the tight time limits that will apply under the prompt payment
regime.