Prompt Payment and Adjudication rules took effect on Oct. 1, 2019, and apply to all construction projects, with few exceptions. COCA has developed resources for COCA’s members to share with their members.  A comprehensive social media and marketing campaign to promote Prompt Payment and Adjudication is being developed and will also be shared with COCA members.

The toolkit consists of a webpage and 8 Fact Sheets. 

The Prompt Payment and Adjudication webpage can be found on the COCA website at: https://www.coca.on.ca/advocacy-prompt-payment/ OR http://www.getpaidontime.ca/ (getpaidontime.ca) 

On the webpage, you will find all the fact sheets and links to Ontario Dispute Adjudication for Construction Contracts (“ODACC”) and other related information. 

Fact Sheets 

COCA has developed eight facts sheets to help you navigate Prompt Payment and Adjudication. 

  1. Prompt Payment and Adjudication for OWNERSOntario’s Prompt Payment rules are part of your legal obligations under the Construction Act. With few exceptions, they apply to construction contracts entered into on or after Oct. 1, 2019. The Prompt Payment requirement is triggered when the owner receives a “proper invoice” from the contractor or consultant. https://www.coca.on.ca/wp-content/uploads/2022/11/Prompt-Payment-for-Owners.pdf 
  2. Prompt Payment for ContractorsOntario’s Construction Act now includes timelines and rules to ensure that contractors and subcontractors are paid on time. Prompt Payment applies to construction contracts entered into on or after Oct. 1, 2019, with few exceptions. It applies to invoices you give to owners and invoices you receive from subcontractors. https://www.coca.on.ca/wp-content/uploads/2022/11/Prompt-Payment-for-Contractors.pdf 
  3. Prompt Payment for Sub-ContractorsOntario’s Construction Act now includes timelines and rules to ensure that contractors and subcontractors are paid on time. Prompt Payment applies to construction contracts entered into on or after Oct. 1, 2019, with few exceptions. It applies to invoices you give to contractors, and invoices you receive from sub-subcontractors and suppliers. https://www.coca.on.ca/wp-content/uploads/2022/11/Prompt-Payment-for-Sub-Contractors.pdf 
  4. Prompt Payment and Adjudication 101They are rules and processes designed to speed up payment, resolve disputes quickly, and keep projects moving. They are part of the Ontario Construction Act, and came into effect on Oct. 1, 2019 for most contracts. https://www.coca.on.ca/wp-content/uploads/2022/11/Prompt-Payment-and-Adjudication-101.pdf 
  5. Prompt Payment for HoldbacksIt has long been the case that each “payor” on a construction contract is required to hold back 10% of the price of services or materials that are actually supplied under the contract. This is in effect until all liens that may be claimed against the holdback have expired, been vacated, or discharged. https://www.coca.on.ca/wp-content/uploads/2022/11/Prompt-Payment-for-HoldBacks.pdf 
  6. How Does the Basic Holdback WorkSection 22 of the Construction Act requires each “payor” on a construction contract to hold back 10% of the price of the services or materials as they are actually supplied under the contract until all liens that may be claimed against the holdback have expired. We call this the basic holdback. https://www.coca.on.ca/wp-content/uploads/2022/11/Basic-Holdbacks.pdf 
  7. What is a Proper InvoiceUnder the rules for Prompt Payment in Ontario, the clock starts ticking when the prime contractor delivers a “proper invoice” to the project owner. The owner is legally required to either pay a proper invoice within 28 calendar days or deliver a notice of non-payment for some or all of the amount within 14 days. To get the benefit of Prompt Payment, a contractor must ensure that its invoices meet the legal requirements of a proper invoice. https://www.coca.on.ca/wp-content/uploads/2022/11/What-is-a-proper-invoice.pdf 
  8. Adjudication BasicsAdjudication is a new method of dispute resolution contained in the Ontario Construction Act. It allows parties to a construction contract to enforce a right of payment without going to court. https://www.coca.on.ca/wp-content/uploads/2022/11/Adjudication-Basics.pdf 

Special thanks to Ted Dreyer for leading this project on behalf of COCA and our members.