Prompt payment laws across Canada: what contractors need to know (2026)
Prompt-payment legislation now governs how fast you must be paid on public construction in Alberta, Saskatchewan, Ontario, and federally — with British Columbia's law enacted but not yet in force. The timelines, the adjudication backstop, and where each province stands.
By Joseph Morrison · Founder, Cornerstone Contracts
For years, getting paid on time on a construction project came down to goodwill and bargaining power. That's changed: across much of Canada, how quickly you must be paid — and what happens when you aren't — is now set by law. If you bid public work in Alberta, Saskatchewan, Ontario, or on federal projects, prompt-payment rules already apply to you. Here's the landscape, and where your province stands.
The common rhythm: 28 / 14 / 7
Most Canadian prompt-payment regimes share the same backbone:
- 28 days — the owner must pay the contractor's proper invoice within 28 days of receiving it.
- 14 days — if the owner disputes the invoice, it must deliver a notice of non-payment within 14 days, with reasons.
- 7 days — once you're paid, you pass payment down to your subcontractors within 7 days (and notices of non-payment cascade down the chain on a similar clock).
The phrase proper invoice matters — the clock starts when a compliant invoice is submitted, and several regimes now spell out what makes an invoice "proper." The secondary deadlines (backstops when no notice is given, and the window to refer a dispute to adjudication) vary by jurisdiction, so read the statute that governs your contract.
Where each jurisdiction stands
- Federal — the Federal Prompt Payment for Construction Work Act has been in force since December 9, 2023, covering federal construction projects. Important wrinkle: federal projects located in Ontario, Saskatchewan, and Alberta follow that province's regime rather than the federal Act, because those provinces are designated.
- Ontario — prompt payment and adjudication have applied under the Construction Act since October 1, 2019, the most established regime in the country. A significant set of amendments took effect January 1, 2026, including a deemed-proper-invoice rule (the owner must flag a deficiency within 7 days), a broader adjudication scope, and mandatory annual holdback release.
- Alberta — the Prompt Payment and Construction Lien Act (PPCLA) has been in force since August 29, 2022. Adjudication runs through ministerially-authorized nominating authorities, and 2025 amendments expanded when adjudication is available.
- Saskatchewan — the Builders' Lien (Prompt Payment) Amendment Act has been in force since March 1, 2022, with disputes adjudicated through the Saskatchewan Construction Dispute Resolution Office (SCDRO).
- British Columbia — BC's Construction Prompt Payment Act received Royal Assent on November 27, 2025, but is not yet in force. It will come into effect on a date set by regulation after a transition period, and the supporting regulations have not yet been made. Watch for implementation through 2026 — but don't assume the timelines bind your BC project until the Act is proclaimed in force.
- Manitoba — a prompt-payment regime has been in force since April 1, 2025.
- Elsewhere — Nova Scotia and New Brunswick have enacted prompt-payment legislation that is not yet in force (awaiting proclamation/regulations); Quebec has no general prompt-payment statute, but its Regulation respecting prompt payments came into force for public construction contracts on September 8, 2025, phasing in by contract value through 2027 (it does not apply to private contracts).
Adjudication: the part with teeth
The deadlines would mean little without enforcement, and that's what adjudication provides — a fast, interim dispute process that resolves payment fights in weeks, not the years a lawsuit takes, while the project keeps moving. An adjudicator's determination is binding on an interim basis and enforceable, and the regimes run it through dedicated bodies (ODACC in Ontario, the SCDRO in Saskatchewan, nominating authorities in Alberta, CanDACC federally). For a small contractor, this is the most practical change: a credible, affordable route to get paid without betting the company on litigation.
What it means for you
- Submit clean, compliant invoices. The clock starts on a proper invoice — get the format, backup, and timing right so a buyer can't reset it.
- Know your dates. Diarize the 28-day and 14-day marks on every project. A late or missing notice of non-payment works in your favour.
- Pay your subs on time. The obligation flows down — being paid doesn't end your duties, it starts a 7-day one.
- Use adjudication when it's warranted. It exists precisely so a stalled payment doesn't become a financing crisis.
Prompt payment pairs with the other eligibility basics — see our guides to bid bonds and surety and insurance and WCB requirements for public bids. And once your paperwork is in order, the work is finding the right tenders: browse what's open across Alberta, Saskatchewan, and British Columbia, then start free to see them matched to your profile.
Prompt-payment legislation is detailed and changes as regulations are made and amendments take effect. The dates and timelines above are a general overview, not legal advice — confirm the current rules for your jurisdiction and project, and consult a construction lawyer for a specific dispute.