April 22, 2026
Construction Law Newsletter April 2026
This special edition of our newsletter highlights key legislative changes reshaping
construction law across Canada, and explores how stricter timelines and faster
adjudications are transforming payment practices, lien rights, and dispute
resolution.
BC’s Prompt Payment Act: New Duties and Reduced Delay Claims…………………. 1
Navigating Bill 60: Key Amendments to Ontario’s Construction Act ……………… 3
Federal Prompt Payment for Construction Act………………………………………… 4
BC’s Prompt Payment Act: New Duties and Reduced Delay Claims
By Jonathan Weisman, Dolden Vancouver
British Columbia is aligning the regulation of construction payments and liens with practice in other Canadian provinces. Bill 20, the Construction Prompt Payment Act (the “CPPA”), proposes amendments to the Builders Lien Act and introduces a mandatory payment and adjudication regime.
Similar legislation has been adopted in Ontario and Alberta, and Saskatchewan and Nova Scotia are introducing comparable regimes. Experience in other provinces suggests broader effects, particularly on construction delay claims.
The Policy Objective Behind Prompt Payment Legislation
Contractors rely on steady workflow and coordination, and even short payment delays can disrupt schedules and escalate into delay claims. Prompt payment legislation is designed to address this problem by enforcing predictable payment timelines, requiring disputes to be raised promptly and in defined form, and creating a rapid dispute resolution mechanism.
Core Features of BC’s Proposed Regime
The CPPA introduces three interconnected mechanisms: proper invoices, mandatory payment timelines, and adjudication. These core elements cannot be avoided by contract. Any clause that attempts to override these requirements will be void.
1: Proper Invoices and Payment Timelines
Project participants’ invoices must contain prescribed information, including
contractor information, amount, description of work, and contract reference. Once a
proper invoice is submitted, owners must pay contractors within 28 days, and contractors must
pay subcontractors within 7 days of receiving payment.
2. Notices of Non-Payment
A payor can dispute their obligation to pay by issuing a Notice of Non- Payment. Owners have 14
days to deliver such a notice, and others have 7 days. Failure to issue a compliant notice
eliminates the right to withhold payment. Informal withholding is no longer permitted.
- Adjudication
The Act introduces the option of adjudication for some disputes. These include invoice
validity, valuation, and change orders. Adjudication must proceed quickly, with decisions
required within 30 days. Decisions are binding and enforceable, and payments must be
made within 15 days. Judicial review is available within 35 days but limited to jurisdictional
and procedural fairness grounds.
Lessons from Ontario and Alberta
Ontario’s regime came into force in 2019, followed by Alberta’s in 2022. Key trends have
emerged: (1) adjudication is used to resolve narrow disputes that previously lingered;
(2) disputes are raised and resolved earlier; and (3) strategic withholding of payment has
become riskier. While adjudication does not eliminate litigation, it changes when disputes arise,
with issues addressed during construction rather than project completion.
What can We Expect in Delay Claims?
The CPPA is likely to influence delay claims in several important ways: (1) fewer delay claims due
to rapid resolution, (2) narrower claims with fewer side issues; (3) more clearly documented
disputes; and (4) more complex disputes in some cases due to multiple avenues of review.
Takeaway
Construction stakeholders should ensure processes support detailed
invoices and timely responses.
For insurers, the CPPA introduces new strategic considerations. Disputes may arise earlier,
requiring faster coverage assessments. Interim payment obligations may arise even where liability
is disputed. The narrowing of delay claims may also shift litigation toward core scheduling
issues. Insurers should therefore anticipate earlier involvement, faster evidentiary preparation,
and increased coordination with insured contractors.
For further information or if you have any questions about the above article, please contact
the authors: Jonathan Weisman, Dolden Vancouver, Email: jweisman@dolden.com.
Navigating Bill 60: Key Amendments to Ontario’s Construction Act
By Tara Etemadi, Dolden Toronto
With January 1, 2026 behind us, the sweeping amendments introduced by Bill 60, Fighting Delays, Building Faster Act, 2025, are in full force across Ontario’s construction industry. These changes build on the previously proposed framework under Bill 216, Building Ontario for You Act, introducing new rules for holdbacks, lien rights, and contract terminations.
Separating Annual Holdback Release from Lien Preservation
Bill 60 separates the mandatory annual release of holdback from the lien expiration, keeping lien timelines tied to standard project milestones, such as the publication of a certification of substantial performance, project completion, abandonment, or the termination of a contract, rather than expiring annually.
New Timelines and Procedures for Holdback Publication
The process to release annual holdbacks is governed by the following timelines:
- 14-Day Notice: Owners must publish a Notice of Annual Release of Holdback within 14 days of the contract’s anniversary on a designated construction trade website.
- Payment Window: Holdbacks must be released 60-74 days after publication, provided no liens have been preserved.
Broadened Protection for Holdbacks
Bill 60 expands protections to cover contracts that are abandoned or terminated, preventing owners from using holdbacks prematurely until all potential lien claims are resolved.
Deadline for Termination Notices
Bill 60 implements strict new obligations that dictate how contracts are terminated and provides certainty to the industry regarding lien timelines.
- The 7-Day Rule: if a contract is terminated, a Notice of Termination must be published within 7 days of termination.
- Triggering Lien Rights: the deemed date of termination for the purpose of calculating lien expiry is deemed to be the date the Notice of Termination form is published.
- Contesting Validity: Termination validity may still be disputed despite publication.
Additional Procedural Modernizations
Beyond holdbacks and terminations, Bill 60 and its accompanying regulation introduces the following critical modernizations:
- Expanding Adjudication: the powers of adjudicators have been altered to include making a determination as to whether a matter may be the subject of an adjudication, whether the adjudicator has jurisdiction to conduct the adjudication or whether their jurisdiction is exceeded in the conduct of the adjudication. Additionally, parties now have up to 90 days after a contract’s completion to commence adjudication. On agreement of all parties to the adjudication, this timeline may be altered.
- Streamlined Litigation and Bonds: Lien and trust claims can now be joined in a single proceeding.
Takeaway
Overall, Bill 60 and its regulations modernize Ontario’s construction law framework, balancing cash flow, lien security, and administrative efficiency. With these critical changes now active, stakeholders must proactively update their contract management protocols, payment procedures, and internal systems to successfully navigate this new operational landscape.
For further information or if you have any questions about the above article, please contact the author: Tara Etemadi, Dolden Toronto, Email: tetemadi@dolden.com.
Federal Prompt Payment for Construction Act
By Joey Palov, Dolden Halifax and Mark Whyte, Dolden Halifax
Although no Atlantic province currently has a prompt payment regime in force, defence counsel and insurers should be aware of the federal framework, which applies broadly to construction projects involving federal real property. Nova Scotia introduced prompt payment amendments to the Builders’ Lien Act in 2019, and New Brunswick enacted the Construction Prompt Payment and Adjudication Act in 2023. However, both regimes remain inactive. In the meantime, the federal framework provides useful guidance and reflects the current legislative approach to prompt payment.
At the federal level, the Prompt Payment and Adjudication Act applies to contracts with federal authorities and ties payment to a “proper invoice.” Once a proper invoice is submitted, undisputed amounts must be paid within 28 days. To withhold payment, a party must issue a notice of non-payment within 21 days, setting out the amount withheld and the reasons. The Act also creates cascading payment obligations. Contractors must pay subcontractors within set timelines and pass along partial payments on a proportional basis. Interest accrues automatically on unpaid amounts once the deadline passes, whether under the Act or the contract.
The Act also introduces a fast adjudication process. A party can refer a payment dispute to adjudication when deadlines are missed, even if litigation or arbitration is already underway. The adjudicator’s decision is binding on an interim basis, and payment is generally required within 10 days. If payment is not made, the unpaid party can suspend work without breaching the contract and enforce the decision in court.
For defence counsel and adjusters, the takeaway is that strict statutory deadlines have replaced flexible, negotiated timelines. Early attention to invoice requirements, notice deadlines, and adjudication risk is critical.
For further information or if you have any questions about the above article, please contact the authors: Joey Pavlov, Dolden Halifax, Email: jpalov@dolden.com and Mark Whyte, Dolden Halifax: Email: mwhyte@dolden.com.
