Prompt-payment laws force the money down the construction chain on a fixed clock instead of leaving you to wait on whoever is slowest above you. Where the rules are in force, an owner must pay a proper invoice within 28 days, and a general contractor must pay its subcontractors within 7 days of being paid. As of mid-2026 the regime is fully in force in Ontario, federally, Saskatchewan, Alberta, Manitoba (new contracts only) and the Northwest Territories. British Columbia, New Brunswick and Nova Scotia have passed it but not yet switched it on. Several provinces have nothing at all.
What prompt payment actually does
Before these laws, a subcontractor could wait months because a "pay-when-paid" clause let the contractor sit on your money until the owner paid them. Prompt-payment legislation breaks that chain. Once a valid invoice is delivered, a statutory clock starts that the contract cannot override, and missing a deadline has hard consequences: the payer either pays or loses the right to dispute.
The standard timeline in the in-force provinces follows Ontario's model:
- Owner pays the contractor within 28 days of a proper invoice.
- Contractor pays each subcontractor within 7 days of receiving the owner's payment.
- Each tier below pays the next within 7 days of being paid.
If the owner wants to withhold any amount, they must issue a written notice of non-payment fast, usually by day 14, setting out the specific dollar amount and the specific reason. Vague wording like "disputed" is not a valid notice, and an invalid notice counts as no notice: the full amount becomes payable.
The proper invoice is the ignition key
None of this starts until you deliver a proper invoice. In Ontario, only the prime contractor delivers a proper invoice to the owner, but every tier should invoice to the same standard because a defective invoice starts no clock at all. A proper invoice must include your name and address, the invoice date and the period or milestone it covers, the contract or purchase-order reference, a description and quantity of the work, the amount payable and the payment terms, and the contact details for payment.
In Ontario, since 1 January 2026, an invoice is deemed proper unless the owner objects in writing within 7 days. In Alberta, you must state on the invoice that it is intended to be a proper invoice. Build a checklist and use it every single time.
Which provinces have it, and which do not
- In force: Ontario (1 October 2019), Federal (9 December 2023, federal projects only), Saskatchewan (1 March 2022), Alberta (29 August 2022), Manitoba (1 April 2025, contracts signed on or after that date only), Northwest Territories (1 September 2025, payment rules only, no adjudication).
- Enacted but NOT yet in force: British Columbia (Bill 20 received Royal Assent 27 November 2025, awaiting regulations), New Brunswick (Royal Assent 16 June 2023, no proclamation), Nova Scotia (passed 2019, regulations still pending).
- No legislation: Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut. On those projects you fall back on your contract and your lien rights.
- Quebec is different: there is no general Act. A regulation covers public-sector contracts only, phased in by contract value from 8 September 2025, then 2026, then 2027. Private residential and private commercial work is not covered at all, and the timeline runs on a monthly calendar, not elapsed days.
Adjudication: the fast lane that comes with it
The in-force provinces pair prompt payment with adjudication, a fast-track decision by a neutral adjudicator. In Ontario this runs through ODACC and produces a written determination, roughly 30 to 46 days from start to finish, that must be paid within 15 days. It is interim-binding: it stands until a court or arbitration finally decides, so it gets you paid now without giving up your right to fight on. For a typical $60,000 claim, expect an all-in cost in the low thousands.
Common mistakes
- Sending a defective invoice. Miss the contract reference or the period and the clock never starts. Use a checklist.
- Assuming the law applies everywhere. It does not. Confirm your province and your contract date before you rely on a 28-day or 7-day deadline.
- Treating a vague non-payment notice as final. If the notice does not state a specific amount and a specific reason, it is invalid and the full sum is due.
- Forgetting Manitoba's cut-off. Manitoba prompt payment applies only to prime contracts signed on or after 1 April 2025.
Common questions
How fast does an owner have to pay me?
Under the prompt-payment regimes (in force federally and in several provinces, rolling out in others), an owner must pay a proper invoice within 28 days, and a general contractor must then pay its subcontractors within 7 days of being paid.
What if they dispute the invoice?
The payer can withhold only by serving a notice of non-payment within the set timeline. Miss that and the clock keeps running and the amount falls due. Adjudication, a fast interim-binding process, is available to resolve disputes without going to court.
What is a "proper invoice"?
A complete, correct invoice with the details the contract and the legislation require. The payment clock starts from a proper invoice, so getting the invoice right protects your timeline.
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