28-Day Prompt Payment Timeline

28-Day Prompt Payment Timeline

Fast-Fact Summary

• Governing Agency: Ontario Ministry of the Attorney General / Construction Act framework
• Form, Bylaw, or Regulation: Construction Act, R.S.O. 1990, c. C.30
• Effective/Current Anchor: Ontario Construction Act amendments in force January 1, 2026 through Bill 216 and Bill 60
• Direct Portal or Source: https://www.ontario.ca/laws/statute/90c30

Mandatory Scope

This requirement applies universally to all construction contracts and subcontracts executed within the province of Ontario. It governs all trade categories, general contractors, and subcontractors across all tiers, regardless of project value, worker counts, or equipment classes. Any entity issuing or receiving an invoice for construction services or materials must adhere strictly to these statutory timelines.

Deadlines & Administrative Windows

• 7-Day Invoicing Rule: Invoices are legally deemed proper unless the owner delivers a formal written notice of deficiency to the contractor within 7 days of receipt. Missing this 7-day window forfeits the owner's right to dispute the invoice layout or structure and immediately triggers the 28-day prompt-payment timeline.
• 28-Day Payment Timeline: The owner must pay the contractor within 28 days of receiving a proper invoice, unless a formal notice of non-payment is given within the permitted statutory timelines.
• Mandatory Annual Holdback: For contracts extending beyond one year, owners must publish a Notice of Annual Release of Holdback (Form 6) on an electronic construction trade news website within 14 days after each contract anniversary. Payment of the accrued basic holdback must occur no earlier than day 60 and no later than day 74 after publication, provided no liens are preserved.
• Adjudication Extension: Parties have a strict 90-day window after contract completion, abandonment, or termination to initiate interim binding adjudication through ODACC or a qualified private adjudicator.

Financial & Legal Liability

• Non-Compliance Penalty: Failure to track the payment window can create payment disputes, adjudication exposure, and downstream subcontractor cash-flow pressure. No verified statutory fine amount is specified in the source data, but non-compliance triggers interest penalties and immediate adjudication risk.
• Repeal of Section 27.1: Payers can no longer publish a notice of non-payment to refuse holdback distribution for deficient or incomplete work. Holdback usage is strictly limited to formal contract abandonment or termination scenarios and preserved lien risk.
• Average WSIB Premium Rate: $1.23 per $100 of insurable payroll, down from $1.25 per $100 of insurable payroll.
• G6 Non-Residential Construction Rate: $1.61 per $100 of insurable payroll.
• 2026 Maximum Insurable Earnings Ceiling: $121,700.

Step-by-Step Filing Instructions

• Step 1: Submit Proper Invoice: The contractor must submit a "proper invoice" to the owner. Ensure it meets all statutory requirements of the Construction Act.
• Step 2: Monitor the 7-Day Dispute Window: Track the 7-day period from invoice receipt. If no formal written notice of deficiency is received from the owner within 7 days, the invoice is legally deemed proper.
• Step 3: Track the 28-Day Payment Deadline: Ensure payment is received or issued within 28 days of the proper invoice receipt.
• Step 4: Manage Holdbacks (Form 6): For multi-year contracts, publish the Notice of Annual Release of Holdback (Form 6) on an electronic construction trade news website within 14 days of the contract anniversary. Pay the accrued basic holdback between day 60 and day 74 post-publication, provided no liens are preserved.
• Step 5: Initiate Adjudication if Required: If a payment dispute arises, initiate interim binding adjudication through ODACC or a qualified private adjudicator within the strict 90-day window following contract completion, abandonment, or termination.

2026 Inspection Notes

For 2026 construction compliance context, pay close attention to working-at-heights training records, trenching and excavation controls, and training/competency documentation. Do not call this a named official blitz unless the supplied record or source says so.

Official Sources

• https://www.ontario.ca/laws/statute/90c30
• https://www.ontario.ca/laws/regulation/180304