OPENING ADDRESS

Managing Contract Risk in the Era of Prompt Payment

July 16, 2020 8:45am

Neil Abbott
Partner
Gowling WLG

New provincial legislation with respect to prompt payment swept the country in 2019 – in Ontario, Manitoba, Saskatchewan, British Columbia, and Nova Scotia. At the same time, Canada enacted the Federal Prompt Payment for Construction Work Act, which introduces a new prompt payment regime for projects undertaken for the Federal Crown or on federal government lands. Focusing on the amendments to Ontario’s Construction Act that went into effect on October 1, 2019, this session will address:

  • Identifying where the contract risk is under the Prompt Payment regime
  • Evaluating the extent of the risk and who should bear the burden between the Owner and Contractor
  • Clauses for consideration to enhance or decrease the effect of Prompt Payment
  • How to draft collateral documents such as proper invoices to manage risk and Prompt Payment