Federal Prompt Payment for Construction Work Regulations (Criteria, Time Limits, Interest and Circumstances) (SOR/2023-269)

Marginal note:Definition of Act

1 In these Regulations, Act means the Federal Prompt Payment for Construction Work Act.

Marginal note:Criteria for designation

2 A province may be designated under subsection 6(1) of the Act if it has enacted, by its laws, provisions requiring

• (a) the submission of an invoice reasonably similar to a proper invoice, as set out in the Act;

• (b) payment of the invoice to the contractor and then to each lower level of the subcontracting chain, within time limits that are reasonably similar to those set out in the Act;

• (c) in the case of non-payment, the provision of a written notice that is reasonably similar to a notice of non-payment, as set out in the Act;

• (d) if a dispute over payment arises, the implementation of an adjudication process that will allow for a determination according to time limits that are reasonably similar to those set out in the Regulations for the Federal Prompt Payment for Construction Work (Dispute Resolution); and

• (e) that the decision rendered under the process referred to in paragraph (d) is binding on the parties to the dispute unless they come to a written agreement or the determination is set aside by a court order or arbitral award.

Marginal note:Days to exclude

3 The following days and periods are excluded from the computation of time for the purposes of the time limits referred to in sections 9 to 11 of the Act:

• (a) any holiday as defined in subsection 35(1) of the Interpretation Act;

• (b) Saturdays;

• (c) the nine-day period beginning on December 24 and ending on January 1; and

• (d) any construction holiday that is recognized by any provincial government.

Marginal note:Interest on unpaid amounts — computation

• 4 (1) Interest awarded under subsection 14(2) of the Act is calculated as simple interest that is equivalent to the average bank rate plus 3% per year, from the due date until receipt of payment.

• Marginal note:Definitions

  (2) The following definitions apply in this section.

  average bank rate

  average bank rate means the simple arithmetic mean of the bank rates that are established during the month before the month in respect of which interest is being calculated. (taux d’escompte moyen)

  bank rate

  bank rate means the rate of interest established periodically by the Bank of Canada as the minimum rate at which the Bank of Canada makes short term advances to members of the Canadian Payments Association. (taux d’escompte)

Marginal note:Prescribed circumstances

5 An adjudicator is not required to determine a dispute in the following circumstances:

• (a) the dispute they were to determine has been consolidated with another dispute and another adjudicator has been appointed to determine the consolidated disputes;

• (b) their appointment is revoked by agreement of all the parties;

• (c) they have a conflict of interest; or

• (d) it has been determined, to the satisfaction of the Adjudicator Authority, that they are no longer able to adjudicate the dispute.

Marginal note:Coming into force

Footnote ^*6 These Regulations come into force on the day on which section 387 of the Budget Implementation Act, 2019, No. 1, chapter 29 of the Statutes of Canada, 2019, comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

• Return to footnote ^*[Note: Regulations in force December 9, 2023, see SI/2023-77.]