Prompt Payment: Lien Process and Timelines
A critical change in the new Prompt Payment and Construction Lien Act relates to the standard timeline for lien holdbacks and registration. That timeline will shift from 45 days to 60 days.
As with the previous Act, there are exceptions to the standard timeline. The exception related to an oil or gas well or a well site remains 90 days. There is a new exception (also 90 days) for improvements related to the furnishing of concrete (excluding “ready-mix” concrete).
To understand if these or any other exceptions apply to you and your work, you should speak to your lawyer or reach out to a member of our construction law team.
The key takeaways about lien holdbacks and registration are:
- Understanding that the standard timeline will change to 60 days; and
- Being aware of the fact that there are exceptions.
The new Act introduces a prompt payment scheme. Key takeaways related to prompt payment are as follows:
- The Act creates the notion of “Proper Invoices“. These must be issued from the contractor to the owner every 31 days. The legislation sets out specific requirements for Proper Invoices.
- At each stage of a project, and with every Proper Invoice, the party can pay the invoice or dispute it. Specific timelines apply for both payment and disputing.
The payment and dispute processes for Proper Invoices are set out in the table below.
Our complimentary on-demand webinar provides an overview and commentary on the lien process and timelines set out in the Act.
Additional more specialized webinars are available in other sections of this hub, or below in our Resource Library.