Bill 69 explained in plain English
Prompt Payment Act, 2014
Ontario legislature bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Legislative Assembly of Ontario snapshot for 40th Parliament, 2nd Session. Representative vote breakdowns appear when the Assembly publishes an Ayes and Nays page for the bill.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
The Prompt Payment Act, 2013, establishes rules for timely payments in Ontario's construction industry, including timelines for progress and final payments, and rights to suspend or terminate contracts for non-payment.
This bill, titled the Prompt Payment Act, 2013, introduces new rules for payments within the construction industry in Ontario. It aims to ensure contractors and subcontractors are paid in a timely manner for work performed. Key provisions include setting timelines for progress and final payments, outlining procedures for disputing payments, establishing rights for contractors and subcontractors to suspend work or terminate contracts if payments are not made, and requiring the disclosure of financial information.
- Establishes rules for progress and final payments in construction contracts and subcontracts.
- Grants contractors and subcontractors the right to suspend work or terminate contracts if they are not paid.
- Requires owners to provide contractors with financial information before entering into a contract.
- Entitles subcontractors to receive certain financial information from contractors.
- Authorizes the Lieutenant Governor in Council to make regulations related to the Act.
- Owners in the construction industry
- Contractors in the construction industry
- Subcontractors in the construction industry
- The Crown (as the Act binds the Crown)
- Contractors and subcontractors have the right to receive progress payments.
- Contractors and subcontractors have the right to receive final payments.
- Contractors and subcontractors have the right to suspend work or terminate a contract if not paid.
- Owners must provide contractors with prescribed financial information before entering a contract.
- Contractors must promptly provide financial information to subcontractors upon request.
- Payers must provide certain payment information to subcontractors.
- Payers must notify subcontractors when they receive payments related to an improvement.
- The Act comes into force on a day to be named by proclamation of the Lieutenant Governor.
- Progress payments are generally due within 20 days after a contractor submits an application, or within 30 days (or 10 days after a payment certificate) for subcontractors.
- Final payments for contractors are due within 15 days of application (or 5 days after a payment certificate), and for subcontractors within 30 days (or 10 days after a payment certificate).
- A payment application is deemed approved 10 days after submission unless notice of disapproval or amendment is given.
- Notice periods for suspending work or terminating a contract due to non-payment are generally seven days.
- Interest is payable on overdue progress and final payments at a rate that is the greater of the prejudgment interest rate under the Courts of Justice Act or the rate specified in the contract.
- Payers may have to pay demobilization and remobilization costs if work is resumed after a suspension.
- Owners are liable for damages if they fail to provide required financial information or misstate it.
- Persons who breach confidentiality regarding financial information are liable to the owner for damages.
- Failure to provide required financial information or misstating it can result in liability for damages.
- Contravention of confidentiality rules regarding financial information can result in liability for damages.
- The Superior Court of Justice can order a person to comply with requests for information.
- The Act does not apply to contracts or subcontracts prescribed by regulations, which are not yet defined.
- The Act's commencement date is not specified and depends on a proclamation by the Lieutenant Governor.
- The specific financial information required from owners, and other details for regulations, are not defined in the Act itself but will be in regulations.
- The Act does not specify consequences or penalties beyond liability for damages for breaches of information or confidentiality rules.
The Prompt Payment Act, 2013, incorporates definitions from the Construction Lien Act and specifies that entitlements to payments under this new Act are subject to the holdback obligations already in the Construction Lien Act. It also references the Construction Lien Act for determining when a contract is deemed completed and when services or materials are last supplied.
Source: Sections 1, 4, 11
The Prompt Payment Act, 2013, uses the prejudgment interest rate determined under this Act for calculating interest on overdue payments.
Source: Section 13
The Lieutenant Governor in Council is authorized to make regulations that can prescribe various matters referred to in the Act, including exemptions from the Act for certain contracts or subcontracts.
Source: Sections 1(2), 15
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
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Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
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Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced