Payment delays are among the biggest risks in construction projects, often creating cash flow problems that can derail schedules and strain relationships.

To address these issues, many Canadian provinces have introduced – or are in the process of introducing – prompt payment legislation to supplement existing builders’ lien laws.

These new statutory regimes require contractors to submit “proper invoices” within strict timelines and provide access to fast-track adjudication when disputes arise. The goal is simple: to keep money flowing through the construction pyramid and prevent costly project delays.

As provinces continue to implement these frameworks, this article highlights the most recent national developments so you can anticipate changes, protect your bottom line, and remain on solid footing in an evolving legal landscape.

Where do we stand? The status of prompt payment across Canada

Ontario leads the way

Ontario was the first Canadian province to implement a prompt payment and adjudication regime through amendments to its Construction Act. In force since October 1, 2019, this regime applies to all construction contracts and subcontracts governed by Ontario law and has reshaped the payment landscape by introducing strict timelines and a fast-track dispute resolution process.

The Construction Act define a “proper invoice,” which contractors must provide to owners on a monthly basis (subject to the parties’ contract), and establishes strict statutory timelines for payment. Disputes regarding payment may be referred to an adjudication process. The Construction Act was further amended in November 2024, although these amendments have yet to be proclaimed (draft regulations are available for comment until September 25, 2025).[1]

Since the Construction Act came into force, Miller Thomson’s lawyers have been closely monitoring and analyzing how Ontario courts and adjudicators are applying the law, including in the following publications:

Prompt payment: Saskatchewan’s new regime

Saskatchewan followed Ontario’s lead by introducing The Builders’ Lien (Prompt Payment) Amendment Act, 2019, which came into force on March 1, 2022.[2] For contracts signed after that date, the new changes regarding prompt payment and adjudication apply. Older contracts, however, remain governed by the former Builders’ Lien Act.[3] The Builders’ Lien (Prompt Payment) Admendment Act, 2019 establishes an adjudicative body and process to resolve payment disputes between owners, contractors, and subcontractors.

Our team has analyzed how these changes are reshaping payment practices in Saskatchewan’s construction industry:

Alberta’s regime: Key dates and takeaways

In Alberta, the Prompt Payment and Construction Lien Act (the “PPCLA”) received royal proclamation on April 1, 2025, replacing the Builders’ Lien Act andembedding prompt payment and adjudication processes into Alberta’s construction landscape.[4] The prompt payment regime defines “proper invoices’” and sets strict statutory timelines for their issuance.

Adjudication is available both after a project’s completion and where arbitration or court proceedings have already been commenced. In addition, adjudicators’ orders may be entered with the court, even where an application for judicial review has been made.

Further amendments to the PPCLA were proclaimed on April 1, 2025. These amendments modified the adjudication process and extended portions of the scheme to provincial projects.[5]

Miller Thomson’s constructions lawyers have tracked the development of the PPCLA and provided commentary on case law arising from the new legislation:

Nova Scotia, Manitoba, New Brunswick and the NWT: Where prompt payment stands

Other provinces have also moved to implement similar regimes in their respective jurisdictions.

In Nova Scotia, the Builders’ Lien Act (amended) received Royal Assent on April 12, 2019.[6] The amendments provide that a dispute may only be referred to adjudication if it pertains to payment under a contract, the valuation of services or materials under a contract, or a prescribed matter.[7] However, the Builders’ Lien Act (amended) has not yet to come into force, as the provincial government continues to develop regulations to support the legislation’s amendments.[8] Once in force, the lien legislation will be renamed as the Builders Lien and Prompt Payment Act.

In Manitoba, The Builders’ Liens Amendment Act (Prompt Payment) received Royal Assent on May 30, 2023, and came into force on April 1, 2025.[9] This statute amends the province’s Builders’ Liens Act and sets out timelines by which “proper invoices” must be provided and paid by parties to the construction project, while providing for the types of disputes that may be referred to adjudication.[10]

In New Brunswick, the Construction Prompt Payment and Adjudication Act received Royal Assent on June 16, 2023, but has not yet come into force.[11] Under this legislation, parties may refer payment disputes to adjudication, so long as the party giving notice of the adjudication does so before the date the contract is completed.[12]

Finally, in the Northwest Territories, the Builders’ Lien Act received Royal Assent on October 6, 2023, and came into force on September 1, 2025, providing prompt payment provisions intended to ensure contractors are paid in a timely manner.[13] However, the Builders’ Lien Act does not provide for adjudication in the event of disputes over payment.

What’s next: Provincial plans for future prompt payment legislation

Other provinces have chosen to continue operating under existing builders’ lien legislation or are only now taking steps to implement prompt payment regimes similar to those enacted in Ontario, Alberta, and elsewhere in Canada.

In British Columbia, large table consultations were held in 2024 between the Ministry of Attorney General and industry stakeholders.[14] The Ministry is now preparing a legislative proposal for further consideration by the provincial government.[15] Until new legislation is enacted, builders’ liens in British Columbia remain governed by the province’s Builders Lien Act.[16]

Similarly, in Newfoundland and Labrador, the government has engaged industry stakeholders on the potential implementation of a similar regime, which has received extensive industry support.[17] In contrast, Prince Edward Island has no plans to implement prompt payment legislation and continues to operate under its Mechanics’ Lien Act.[18]

Key takeaways for construction professionals: Best practices across Canada

  • Understand “proper invoices.” Every province adopting prompt payment regimes emphasizes the need for proper invoices. Ensure your team knows what must be included (dates, descriptions, certifications, etc.). Incomplete invoices may stop the clock on payment.
  • Track deadlines closely. Prompt payment regimes impose strict statutory timelines. Missing a deadline to pay, dispute an invoice, or preserve a lien can cost you leverage – or worse, your rights.
  • Prepare for adjudication. Adjudication is designed to be fast, binding, and focused. Maintain records of all communications, changes, and disputes so you are ready if called to adjudicate mid-project.
  • Know your province ’s status. Ontario, Saskatchewan, Alberta, Manitoba, and the Northwest Territories already have regimes in place. Nova Scotia and New Brunswick are preparing to launch. British Columbia and Newfoundland are consulting. Each province’s rules differ – do not assume one size fits all.
  • Plan cash flow accordingly. Prompt payment regimes are intended to protect contractors and subcontractors from delayed payments, but owners will feel the pressure too. Build realistic cash flow forecasts that account for these timelines.

Conclusion

Prompt payment regimes are reshaping Canada’s construction industry, though their practical impact is still unfolding. With limited judicial interpretations to date, contractors and owners must carefully monitor ongoing changes to the law to ensure compliance and protect their rights. What is clear, however, is that these new laws are already transforming payment practices, reducing cash flow uncertainty, and accelerating dispute resolution processes.

If you want to stay ahead of these changes, whether by updating your contracts, reviewing invoicing practices, or preparing for potential adjudications, do not hesitate to contact Miller Thomson’s Construction and Infrastructure Group. We are here to help you build on solid ground.

[1] Bill 216, Building Ontario for You Act (Budget Measures), 2024, 1st Sess, 43rd Leg, Ontario, 2024 (assented to 6 November 2024), SO 2024, c 20. The Draft Regulations and the Ontario Government’s associated Discussion Paper can be viewed on the Ontario Regulatory Registry website at https://www.regulatoryregistry.gov.on.ca/proposal/51633

[2] The Builders’ Lien (Prompt Payment) Amendment Act, 2019, SS 2019, c 2.

[3] The Builders’ Lien Act, SS 1984-85-86, c B-7.1.

[4] Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4.

[5] Bill 30, Service Alberta Statutes Amendment Act, 2024, 1st Sess, 31st Leg, Alberta, 2024 (royal assent received 5 December 2024, Part 2 and 3 proclaimed April 1, 2025).

[6] Nova Scotia, 1st Session, 64th General Assembly, Bill No. 211, “An Act to Amend Chapter 277 of the
  Revised Statutes, 1989, the Builders’ Lien Act.

[7] Builders’ Lien Act (amended), SNS 2022, c 43.

[8] Government of Nova Scotia, “Prompt payment and dispute resolution for the construction industry:
engagement” (last accessed 11 June 2025), online: <https://novascotia.ca/prompt-payment-engagement/>.

[9] The Builders’ Liens Amendment Act (Prompt Payment), SM 2023, c 30.

[10] Builders’ Liens Act, CCSM, c B91.

[11] Construction Prompt Payment and Adjudication Act, SNB 2023, c 15.

[12] Construction Prompt Payment and Adjudication Act, SNB 2023, c 15, s. 23.

[13] Builders’ Lien Act, SNWT 2023, c 24.

[14] “Prompt Payment: Industry Priority”, British Columbia Construction Association (August 2025), online:
  https://bccassn.com/industry-priorities/prompt-payment/.

[15] Mechanics’ Lien Act, RSPEI 1988, c M-4; RSNL 1990, c M-3.

[16] Builders Lien Act, SBC 1997, c 45.

[17] Newfoundland and Labrador, “What We Heard: Consultations on the Mechanics’ Lien Act” (August 2024), online: <https://www.gov.nl.ca/dgsnl/files/Mechanics-Lien-Act-Consultations-What-We-Heard.pdf>.

[18] Mechanics’ Lien Act, RSPEI 1988, c M-4.