Ontario Construction Act

The Ontario Construction Act (formerly the Construction Lien Act, reformed by Bill 142) introduced Canada’s first prompt-payment and adjudication regime, in force from 1 October 2019. It requires owners to pay contractors within 28 days of a ‘proper invoice’ and contractors to pay subcontractors within 7 days of receiving payment, flowing down the pyramid. Major amendments effective 1 January 2026 added a mandatory annual release of the 10% statutory holdback, expanded adjudication scope, and permitted private adjudicators.

Connections

• Prompt Payment Legislation — first Canadian example of the model, source: 2019
• Construction Adjudication — Act establishes the adjudication regime, source: 2019