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Frequently Asked Questions
Prompt payment legislation establishes mandatory time periods for issuing, disputing, and paying invoices in the construction industry.
It creates a specialized scheme to adjudicate disputes over non-payment and payment amounts.
The objectives of prompt payment legislation include:
Alleviating Payment Delays: Contractors, subcontractors, and suppliers should get paid faster, while owners are required to pay promptly.
Alleviating Project Delays: Interim adjudication helps contractors receive payments without stopping work.
Currently, only four Canadian jurisdictions have prompt payment legislation in force: Ontario, Saskatchewan, Alberta, and the federal level. New Brunswick has also passed such legislation but hasn’t yet brought it into effect1.
- Construction companies should have trained and certified staff in relevant areas such as safety, project management, and specialized skills.
- Certifications may include OSHA safety training, LEED accreditation, and trade-specific certifications.