What is one thing all contractors are concerned about? Our guess
is that they are all concerned that they do not receive prompt
payment for their work.
In response to this constant concern, legislatures across Canada
have introduced prompt payment legislation for construction
projects. Below is a brief update on prompt payment legislation in
Canada.
- Ontario – In Force Since October
2019
On December 12, 2017, Bill 142: Construction Lien Act
Amendment Act, 2017 received royal assent. This bill
amended the Construction Act, R.S.O. 1990 c.30 to
introduce prompt payment and adjudication provisions which came
into force in July 2018 and October 2019, respectively. These
amendments streamlined the payment process by prescribing timelines
for payment between owners, contractors and subcontractors. For
example, once an owner receives a “proper invoice” from
the contractor it must pay within 28 days. If the owner does not
pay all or part, it must give the
