Prompt Payment and Adjudication
Prompt Payment and Adjudication are new legislative remedies available to contractors and subcontractors to help them get paid on time. Comments from contractors, association leaders and other stakeholders reveal that many contractors are unaware of or are unable to take advantage of these tools.
The resources gathered on this page, in conjunction with an upcoming communications campaign, should help simplify and bring greater awareness to the adjudication and prompt payment process.
Ten Facts About Getting Paid On Time
- Prompt Payment and Adjudication are new legislative remedies in Ontario to help contractors and subcontractors get paid on time.
- Prompt payment and Adjudication are generally available if 1) the project design started after July 1, 2018, and 2) the prime contract was entered into after October 1, 2019.
- An owner must pay a contractor’s proper invoice within 28 days unless the owner delivers a notice of non-payment to the contractor within 14 days of the contractor’s proper invoice.
- A contractor must pay its subcontractors within 7 days of the date that it was paid, or ought to have been paid, by the owner, unless the contractor delivers a notice of non-payment to its subcontractors.
- Contractors and subcontractors can enforce their right to timely payment through Adjudication.
- You can start an Adjudication by visiting the ODACC website: https://odacc.ca/en/
- You don’t need a lawyer to start an Adjudication.
- An adjudicator will generally rule on a case within 40 days.
- Your right to Adjudication expires when your contract or subcontract is completed.
- A contractor who delivers a notice of non-payment to its subcontractors because it wasn’t paid by the owner must start an adjudication with the owner in 21 days to recover payment.
COCA Adjudication Webinar
To view COCA’s Adjudication webinar CLICK HERE
Get answers to these questions:
- What is adjudication?
- What type of dispute can be adjudicated?
- What is ODACC’s role?
- How much does adjudication cost?
- How do you start an adjudication?
- How is an adjudicator appointed?
- How does the process work?
- How does ODACC’s portal work?
Prompt Payment Ontario Guide
This Guide is primarily intended for trade contractors. Much of the time, trade contractors will be contracting with someone other than the owner, whether as subcontractors to the general contractor or as sub-subcontractors to other trade contractors. There are situations, however, where trade contractors will contract directly with an owner, for example in a multi-prime construction management project.
The members of the Link2Build group have secured permission to reprint and distribute this, the second edition of the Layperson’s Guide to the Construction Act.
The guide is a useful resource for those wishing to understand the depth and breadth of changes to the construction environment brought about by this transformative piece of legislation. It distills at times complex information about such subjects as lien rights, trust obligations and adjudication into accessible ideas, and provides answers to commonly asked questions on these and other topics.