ARTICLE · 31 OCTOBER 2023

Market Intelligence Thought Leadership Award Winner

Prompt Payment Legislation – Update

Alexander Holburn Beaudin + Lang LLP

Explore more from Alexander Holburn Beaudin + Lang LLP

The payment terms for construction projects are changing across Canada. Prompt payment legislation includes mandatory payment terms intended to increase the cash flow of contractors and subcontractors.

CanadaReal Estate and Construction

Daniel Thompson

Author LinkedIn connections

The payment terms for construction projects are changing across Canada. Prompt payment legislation includes mandatory payment terms intended to increase the cash flow of contractors and subcontractors.

Prompt payment legislation is in force in Ontario, Saskatchewan, and Alberta. Federally, the Federal Prompt Payment for Construction Work Act received Royal Assent in June 2019 and the Government of Canada published draft prompt payment regulations in February 2023. Royal Assent has also been given to prompt payment legislation in Manitoba, Nova Scotia, and New Brunswick, and in British Columbia, legislation is being debated

ONTARIO

In Ontario, prompt payment requirements were enacted in October 2019 through an amendment to the Construction Act. The amendment is intended to ensure that contractors' and subcontractors' invoices get paid in a timely manner. The amended Construction Act includes:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

Relief From Forfeiture In Commercial Lease Disputes: What Landlords Should Know When Tenants Seek To Reinstate Terminated Leases

CanadaReal Estate and Construction

McCarthy Tétrault

Article 46 de la PPCLA : aucun délai de deux ans pour la tenue d’un procès lorsqu’un privilège est remplacé par une garantie

CanadaReal Estate and Construction

No Personal Guarantee? Professionals May Still Be Personally Liable

CanadaReal Estate and Construction

Scott Venturo Rudakoff LLP

Ontario’s Mandatory Annual Holdback Release Starts In 2027: What Owners And Contractors Need To Know

CanadaReal Estate and Construction

What Every Landlord And Property Owner Must Know: Occupiers’ Liability And Winter Maintenance

CanadaReal Estate and Construction

Pallett Valo LLP

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

Comparative Guide

Real Estate

Comparative Guide

Construction

See more popular content from

Real Estate and Construction

Bill 20: Prompt Payment Legislation Introduced In British Columbia

On October 7, the Government of British Columbia introduced Bill 20 in the B.C. legislature. Bill 20 implements long-anticipated reforms aimed at providing greater payment and cash-flow certainty for stakeholders...

CanadaReal Estate and Construction

Blake, Cassels & Graydon LLP

No Personal Guarantee? Professionals May Still Be Personally Liable

Many professionals (accountants, engineers, lawyers, dentists and other health professionals) operate through professional corporations believing this structure protects their personal assets from business liabilities. A recent Alberta Court of King's Bench decision serves as a reminder that this assumption can be wrong, and costly.

CanadaReal Estate and Construction

Scott Venturo Rudakoff LLP

Tenant-Caused Property Damage In Ontario: How Landlords Can Claim Compensation

Discovering that your rental property has been damaged by a tenant can be a frustrating and costly experience. Landlords often wonder what their rights are and how they can legally recover the costs of repairs.

CanadaReal Estate and Construction

Canada Extends Ban On Foreign Home Buyers To 2027

The Government of Canada has announced a two-year extension to an existing ban on foreign ownership of Canadian housing.

CanadaReal Estate and Construction

Bennett Jones LLP

REDMA Disclosure Obligations: When Can Presale Purchase Contracts Become Unenforceable?

In KingSett Mortgage Corporation v Lumina Eclipse Limited Partnership, 2026 BCSC 1598, the Supreme Court of British Columbia confirmed that a developer’s failure to disclose material facts...

CanadaReal Estate and Construction

McCarthy Tétrault

The GST/HST Self-Supply Rules: What Residential Builders Should Know

Despite repeated interest rate hikes over the past year, the real estate market in many major Canadian cities remains resilient, and construction of new housing continues to grow.

CanadaReal Estate and Construction

Is Co-Owning A House Becoming More Common In Ontario? (Video)

Buying a home with friends, a partner, or family in Ontario? Property co-ownership can help buyers pool their down payment and qualify for a mortgage.

CanadaReal Estate and Construction

Devry Smith Frank LLP

Tenant Refuses To Leave? A Landlord's Guide To The Eviction Process In Ontario

Dealing with a tenant who refuses to leave your property can be a stressful and frustrating experience. As a landlord, you have responsibilities to your tenant, but you also have rights that protect your property and financial interests

CanadaReal Estate and Construction

Ontario’s Mandatory Annual Holdback Release Starts In 2027: What Owners And Contractors Need To Know

Starting in 2027, all Ontario project owners with contracts entered into on or after January 1, 2026, and most owners with contracts dating back to July 1, 2018, must start releasing statutory holdback to their contractors on an annual basis. This requirement is the latest in a series of construction payment reforms under Ontario’s Construction Act. It replaces the traditional model of retaining holdback until substantial performance. Owners and contractors who fail to comply with the notice and payment timelines face exposure to interest claims, payment disputes, and adjudication proceedings.

CanadaReal Estate and Construction

Renting A Commercial Property In Ontario

Renting commercial space is a major step for any business in Ontario. A commercial lease (or commercial rental agreement) is a contract between a business (tenant) and a property owner...

CanadaReal Estate and Construction

Pacific Legal PC