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ARTICLE · 19 JULY 2018

The New Construction Act: Summary And Timelines Of Major Changes

Overview: This Part sets out short timelines for the payment of contractor and subcontractor invoices.

CanadaReal Estate and Construction

Part I.1 – Prompt Payment

Overview: This Part sets out short timelines for the payment of contractor and subcontractor invoices. The payer is required to make payments in accordance with the timelines, unless it provides a notice of non-payment. Amounts not paid in accordance with the timelines will accrue interest at a specified rate. The prompt payment regime applies to both private and public contracts.

A – Payment Trigger

The trigger for payment is the delivery of a proper invoice to the owner.  It is provided on a monthly basis, unless the contract provides otherwise.  A contract cannot make the giving of a proper invoice contingent upon payment certification or the prior approval of the invoice by the owner.

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