The ‘proper invoice’: What parties to a construction project need to know

On-Site Magazine |  by Catherine DiMarco

The new prompt payment provisions under section I.1 of Ontario’s Construction Act (formerly called the Construction Lien Act) are scheduled to come in to effect on October 1, at the same time as Part II.1, which includes the adjudication provisions. The new prompt payment and adjudication provisions follow the modernization provisions and trust changes that came into effect last year.

It is reported the average time to pay an invoice on a construction project is approximately 72 days. It was generally recognized that there were important, some say critical, improvements to be made to the construction lien and trust regimes in Ontario. The ultimate goal of the prompt payment provisions under the new Act is to ensure that contractors and subcontractors are paid on time and, with the introduction of the adjudication regime, to provide for a dispute resolution process designed to resolve disputes more quickly, easily and cheaply.