Ontario Construction Act: Prompt Payment Guide
Ontario was the first Canadian province to adopt modern prompt-payment and adjudication rules, through amendments to the Construction Act that took effect in 2019. The Ontario framework is the working model the rest of the country has followed, which is why so many provinces share its 28-day, 14-day and 7-day structure.
Tiercord tracks every Construction Act deadline against each of your Ontario projects, drafts the matching proper invoices and notices, and assembles ODACC-ready adjudication records.
Construction Act
R.S.O. 1990, c. C.30
October 1, 2019
Operative today
Ontario Dispute Adjudication for Construction Contracts (ODACC)
Ontario prompt-payment deadlines at a glance
Each clock below runs from the event its own section names, computed in Ontario's local time with statutory rollover for the province's holidays. Every row cites the section it comes from, where the province has one.
| Clock | Value | Statute |
|---|---|---|
Owner payment due Days from a proper invoice until the owner must pay or deliver a notice of non-payment. Ont. Construction Act Section 6.4 | 28 days | Ont. Construction Act Section 6.4 |
Notice of non-payment window Window to dispute an invoice. Miss it and the amount is generally payable in full. Ont. Construction Act Section 6.4 | 14 days | Ont. Construction Act Section 6.4 |
Deemed-proper review window If the payer does not flag a defect in the invoice, it is deemed a proper invoice. Ont. Construction Act Section 6.1 | 7 days | Ont. Construction Act Section 6.1 |
Pay your subcontractors After being paid, days to pass payment down to subcontractors. Ont. Construction Act Section 6.5 | 7 days | Ont. Construction Act Section 6.5 |
Pay subs even if unpaid If the owner has not paid, subs must still be paid by this day when you are the contractor billing the owner, or 42 days when you are a subcontractor paying your own subcontractor, or the matter referred to adjudication. Ont. Construction Act Section 6.5 | 35 days | Ont. Construction Act Section 6.5 |
Undertaking to adjudicate When refusing to pass payment down, the payer must undertake to refer the dispute to adjudication within this window. Ont. Construction Act Section 6.5 | 21 days | Ont. Construction Act Section 6.5 |
Adjudication referral window Time after the contract is complete to refer a dispute to adjudication. Refer later and the referral is a nullity. Ont. Construction Act Section 13.5 | 90 days after completion | Ont. Construction Act Section 13.5 |
Adjudicator determination Days for the adjudicator to issue a binding determination after receiving the claimant's documents. Ont. Construction Act Section 13.13 | 30 days | Ont. Construction Act Section 13.13 |
Comply with determination Days to pay an amount ordered by an adjudicator. Ont. Construction Act Section 13.19 | 15 days | Ont. Construction Act Section 13.19 |
Holdback retained Percentage of each payment retained as statutory holdback to protect lien claimants. Ont. Construction Act Section 22, Section 31 | 10% | Ont. Construction Act Section 22, Section 31 |
Holdback release period Period that must run before holdback may be released. Ont. Construction Act Section 22, Section 31 | 60 days | Ont. Construction Act Section 22, Section 31 |
Lien filing window Days to preserve or register a construction lien before the right expires. Ont. Construction Act Section 31 | 60 days | Ont. Construction Act Section 31 |
Go deeper on Ontario
Ontario prompt-payment FAQ
Who runs construction adjudication in Ontario?
The Ontario Dispute Adjudication for Construction Contracts (ODACC) is the Authorized Nominating Authority that administers adjudications and maintains the roster of adjudicators.
Does the Ontario framework apply to my contract?
The prompt-payment and adjudication provisions apply to most construction contracts and subcontracts entered into after the 2019 in-force date, subject to the Act's transition rules.
When does the prompt-payment clock start?
It starts when a proper invoice is received by the payer. If the invoice is missing required information, it may not qualify as a proper invoice and the clock may not start until the defect is cured.
What happens if a notice of non-payment is late?
A late notice is generally treated as if no notice was given, so the full invoiced amount becomes payable, usually with interest from the date payment was due.
Track Ontario deadlines automatically
Track reviewed Ontario payment and security dates, prepare the applicable documents, and keep the supporting records together.