Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 19 FEBRUARY 2024

The Federal Prompt Payment For Construction Work Act In Review

McCarthy Tétrault
McCarthy Tétrault
Contributor
McCarthy Tétrault

McCarthy Tétrault

McCarthy Tétrault LLP provides a broad range of legal services, delivering strategic and...

View firm profile
Explore more from McCarthy Tétrault

The Federal Prompt Payment for Construction Work Act (the "Federal Act") is now in force,[2] and is set to impact contracts for construction work on federal lands.

CanadaReal Estate and Construction
Canadian Construction Law Blog
Canadian Construction Law Blog
Jordan Bierkos
Jordan Bierkos
Ivan Merrow
Ivan Merrow
Dustin E. Seguin
Dustin E. Seguin
Author LinkedIn connections

The Federal Prompt Payment for Construction Work Act1 (the "Federal Act") is now in force,2 and is set to impact contracts for construction work on federal lands. The Federal Act was implemented to streamline payments for construction work, primarily through setting legislated payment deadlines and an expedited dispute resolution process to enforce those deadlines.

The Federal Act has significant consequences for your contracts, cash flow, and dispute resolution options for federal construction projects. This post provides a brief overview of the main components and practical implications of the Federal Act, and how you can prepare for its application.

Summary of Key Components

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.

View source

Related Articles

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

Read more about

Related Comparative Guides

See more popular content from

Article

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
Miller Thomson
Miller Thomson
Article

Gloves Off: Canada Answers U.S. Section 338 Tariffs Dollar-for-Dollar As Washington Escalates With Import Bans

Canada and the United States have entered a new phase of trade conflict, with Canada implementing retaliatory surtaxes on C$27.6 billion of U.S. goods while the United States escalates beyond tariffs to outright import prohibitions on Canadian alcohol, dairy products, and motorcycles. The dispute now extends into government procurement policy, raising questions about compliance strategies and supply chain restructuring as both nations tighten customs enforcement.
CanadaInternational Law
McCarthy Tétrault
McCarthy Tétrault
Article

Federal Government Removes Certain Energy Projects From The Impact Assessment Act Project List

The Canadian government has removed seven types of energy projects from federal impact assessment requirements, shifting review responsibilities to the Canada Energy Regulator and provincial processes. This regulatory change affects pipelines, electrical transmission lines, oil sands facilities, and power plants, fundamentally altering how major energy infrastructure projects will be evaluated and approved across Canada.
CanadaEnvironment
McCarthy Tétrault
McCarthy Tétrault
Article

Productivity Mega Deduction: Key Tax Measures Announced At The Canada Investment Summit

Canada has introduced a permanent Productivity Mega Deduction allowing immediate expensing of up to 100% of eligible capital property costs and Canadian development expenses acquired after September 15, 2026. This measure aims to boost business investment and strengthen Canada's tax competitiveness by expanding immediate expensing eligibility from 15% to approximately two-thirds of capital investments, while reducing the country's marginal effective tax rate to 6.4%.
CanadaTax
McCarthy Tétrault
McCarthy Tétrault
Article

Canada Commits To Airport Privatization Through Long-Term Concessions For Its Four Largest Airports

The Canadian federal government has announced a firm commitment to privatize operations at the country's four largest airports through long-term concessions, marking a decisive shift from earlier exploratory discussions. Prime Minister Mark Carney revealed that while the government will retain ownership of airport lands and assets following the Australian leased-airport model, private investment will be sought to operate Toronto Pearson, Vancouver, Montreal-Trudeau, and Calgary international airports.
CanadaTransport
McCarthy Tétrault
McCarthy Tétrault
Article

Continued Regulatory Reform: Canada’s First Project Of National Interest And Bill C-39

The Canadian government has designated the Pacific Link Pipeline as a project of national interest and introduced Bill C-39, the Building Canada Strong Act, which proposes sweeping reforms to federal environmental assessment and project approval processes. These changes aim to streamline permitting timelines, reduce regulatory duplication, and coordinate Crown consultations while maintaining environmental protections and Indigenous rights.
CanadaEnvironment
McCarthy Tétrault
McCarthy Tétrault