Prompt Payment
Payment delays and disputes can cost your business a LOT of time and money. That’s why Ontario has added Prompt Payment and Adjudication to the Construction Act. COCA’s Prompt Payment and Adjudication Toolkit can help.
Overview
The Construction Act was updated in 2018 (fully in force by 2019) to introduce prompt payment and adjudication, replacing the old Construction Lien Act.
Bill 216, the Building Ontario for You Act (Budget Measures), 2024, brings significant, in-force changes to Ontario’s Construction Act as of early 2026 (refined by Bill 60). It introduces mandatory annual holdback releases, eliminates statutory notices of non-payment for holdback, and enhances adjudication, aimed at improving cash flow and reducing payment delays in the construction industry.
Payment delays and disputes can cost your business a LOT of time and money. That’s why Ontario has added Prompt Payment and Adjudication to the Construction Act. COCA’s Prompt Payment and Adjudication Toolkit can help.
The law now requires payors to pay invoices according to fixed timelines for construction. If your payor does not make payment when it is due, you can choose to use adjudication to enforce your right to payment. It’s a fast and inexpensive way to resolve construction payment disputes.
Other Resources
Disclaimer: This website is intended to provide information to the industry at large and should not be considered legal advice. Contact a lawyer to find out how Prompt Payment and Adjudication apply in your particular circumstances.