{"id":38039,"date":"2025-09-10T14:41:54","date_gmt":"2025-09-10T18:41:54","guid":{"rendered":"https:\/\/www.millerthomson.com\/?p=38039"},"modified":"2025-09-10T14:43:38","modified_gmt":"2025-09-10T18:43:38","slug":"prompt-payment-liens-and-adjudication-reviewing-the-status-of-legislation-in-canada","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/construction-and-infrastructure-law\/prompt-payment-liens-and-adjudication-reviewing-the-status-of-legislation-in-canada\/","title":{"rendered":"Prompt Payment, Liens and Adjudication: Reviewing the status of legislation in Canada"},"content":{"rendered":"\n

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

To address these issues, many Canadian provinces have introduced \u2013 or are in the process of introducing \u2013 prompt payment legislation to supplement existing builders\u2019 lien laws.<\/p>\n\n\n\n

These new statutory regimes require contractors to submit \u201cproper invoices\u201d 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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

<\/a>Where do we stand? The status of prompt payment across Canada<\/h2>\n\n\n\n

Ontario leads the way<\/h3>\n\n\n\n

Ontario was the first Canadian province to implement a prompt payment and adjudication regime through amendments to its Construction Act<\/em><\/a>. 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.<\/p>\n\n\n\n

The Construction Act <\/em>define a \u201cproper invoice,\u201d which contractors must provide to owners on a monthly basis (subject to the parties\u2019 contract), and establishes strict statutory timelines for payment. Disputes regarding payment may be referred to an adjudication process. The Construction Act <\/em>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]<\/a><\/p>\n\n\n\n

Since the Construction Act <\/em>came into force, Miller Thomson\u2019s lawyers have been closely monitoring and analyzing how Ontario courts and adjudicators are applying the law, including in the following publications:<\/p>\n\n\n\n