The prompt payment regime under the Construction Act, requires "prompt" payment of invoices submitted by the contractor to the owner. A contractor is defined in the Construction Act as the party contracting with or employed directly by the owner or an agent of the owner to supply services or materials to an improvement. This means that a contractor includes anyone with a direct contract with the owner, for example: an architect, designer or supplier.
The triggering event for prompt payment is the contractor giving the owner a “proper invoice”, i.e. a written bill or other request for payment. After given a proper invoice, an owner is required to: