Ontario Prompt Payment in 2026: The 7-Day Deadline for Owners

Owners of Ontario construction projects can no longer treat non-compliant invoices as something that can be addressed later. As of January 1, 2026, an invoice that does not meet the "proper invoice" requirements of the Construction Act can still be deemed a proper invoice, unless the owner responds in time.

What changed

The amended Construction Act updates the "proper invoice" framework:

• Section 6.1(1) lists the requirements for a "proper invoice".
• Section 6.1(2) provides that an invoice that does not meet the proper invoice requirements is deemed to be a proper invoice unless the owner, within 7 days of receipt, gives written notice of the deficiency with the invoice and what is required to address it.

Why it’s important for owners

This is an important operational change. Starting from 2026, invoice intake is no longer just an accounting workflow – it is a deadline-driven compliance step. The owner must review and, if needed, send a written notice within 7 days of receipt. If the invoice lands in the wrong inbox (or a payment certifier is away), the statutory clocks keep running anyway.

The timeline in one page

The flowchart below maps the current prompt payment procedure, so your team can see exactly where the risk points are.

With that timeline in mind, the next step for the owner is to build two tools: (1) an updated Day 0–7 internal workflow, and (2) a notice template that the project team can complete and send promptly.

Tool #1: Day 0–7 "proper invoice" workflow

If the owner does not give the contractor a written notice within 7 days stating that the invoice does not meet the requirements of a “proper invoice” and identifying what is required to address the issue, the invoice can be deemed a proper invoice under the Construction Act. Once deemed proper, the prompt-payment timelines start running This is why it’s important for the owner to make sure their internal standard operating procedures are up to date.

Practical steps to build Tool #1

• Assign a "proper invoice triage" process-owner internally. Ensure there is backup person to issue the required written notice during vacations / holidays.
• Route all invoices through a single controlled intake channel (one email address / portal) and auto-forward / notify a distribution list (e.g., contract manager + PM + backup) so nothing is missed. Make it the contractual delivery path.
• Maintain an invoice receipt log. This becomes critical if receipt timing is later disputed.
• Build a checklist that the internal process-owner can apply every time to check the invoices’ compliance with proper requirements. The checklist should cover the statutory items in s. 6.1(1) and any contract-specific invoice requirements.
• Add a Day–3 / Day–4 escalation step so "borderline" issues go to the right person fast (contract admin / finance / legal).

Tool #2: notice template

The notice must do two things: identify the deficiency with the invoice and state what is required to address it. If it doesn’t do both, the notice may be ineffective — and the invoice can still be deemed a proper invoice.

Practical steps to build Tool #2

Include these fields in the template:

• Date / time received + intake channel.
• Project + contract reference.
• Invoice number + period covered.
• Itemized deficiencies with the invoice (e.g. the invoice is missing the contractor’s legal name and address, or the invoice is missing the description of the services / materials that were supplied).
• What is required to address each deficiency (e.g. request to reissue the invoice with the required details added or send a statutory declaration according to the contract’s terms).
• Direction to contractor to resubmit as a proper invoice.
• Any other items important for the organization / contract administration.

Key takeaways for owners

• Treat "proper invoice review" like a hard 7-day deadline.
• Build / update a Day 0–7 workflow.
• Create / use a standard notice template that states what's missing and how to fix it.

If you have any questions about changes to the Construction Act, please contact a member of Construct Legal.

This article is not legal advice and is provided for informational purposes only.