Deadlines & compliance

When does payment actually fall due?

Under the Federal Prompt Payment for Construction Work Act, Canada pays the contractor within 28 calendar days of a proper invoice. To dispute, it issues a notice of non-payment within 21 days, and each party pays the tier below within 7 days of being paid, so subcontractors are due by day 35 and the next tier by day 42.

Enter a proper invoice date to see every statutory deadline. In a designated province like Ontario, switch regimes for the provincial timeline.

01The invoiceFederal · Prompt Payment for Construction Work Act
Federal construction work in a designated province (Ontario, Alberta, Saskatchewan, Manitoba and others) follows that province's regime. Pick Ontario for its 14-day notice; for other provinces, confirm the local rules.
The day the payer received a proper invoice. A proper invoice is delivered monthly unless the contract sets a different cycle.
Awaiting an invoice date
Enter the date the proper invoice was received to see the 28-day payment deadline, the 21-day notice-of-non-payment window, and the day each tier down the chain must be paid.
Federal construction · prompt payment
StepDeadlineNotes
Canada pays the contractor28 daysCalendar days from a proper invoice
Notice of non-payment21 daysTo dispute an invoice (Ontario uses 14)
Contractor pays subcontractors7 days / day 35Within 7 days of being paid
Each lower tier+7 days / day 42Sub to sub-subcontractor
Interest on late paymentBank rate + 3%Per year, simple interest

Last verified 2026-06-27

The federal prompt payment clock

The Federal Prompt Payment for Construction Work Act, in force since December 9, 2023, fixes hard deadlines so money moves predictably from Canada down through the contractor to subcontractors and suppliers on federal construction work. The clock starts the day a proper invoice is received, and from that day Canada has 28 calendar days to pay the contractor any undisputed amount.

Disputes, the chain, and interest

To withhold payment, Canada must issue a notice of non-payment within 21 days of the proper invoice, stating the amount and the reason. Anything not disputed is still due within the 28 days. Payment then flows down the chain on a 7-day clock: a contractor paid on day 28 must pay its subcontractors by day 35, and a sub must pay the tier below by day 42. An amount paid late carries interest at the average bank rate plus 3% per year, as simple interest.

The designated-province carve-out

Where the work sits matters. The federal Act defers to designated provinces that have their own prompt-payment regime. Federal construction work in Ontario, Alberta, Saskatchewan, Manitoba and other designated provinces follows the provincial rules instead of the federal ones. Ontario's Construction Act keeps the same 28-day payment and 7-day chain but uses a 14-day notice of non-payment, so the regime you choose changes the dispute window. For the other designated provinces, confirm the local timeline before you rely on a date.

What this tool leaves out

This is a planning count of the statutory calendar-day deadlines. It assumes a proper invoice, does not adjust for a non-standard billing cycle set by the contract, and does not compute the interest amount. Use the dates as guidance, not legal advice, and confirm against the specific solicitation and the governing regulation on the Justice Laws Website or, for Ontario, the Ontario Construction Act.

Common questions

How long does Canada have to pay under the federal prompt payment rules?

Under the Federal Prompt Payment for Construction Work Act, which came into force on December 9, 2023, the federal government must pay the contractor within 28 calendar days of receiving a proper invoice. The clock starts on the day the proper invoice is received and runs on calendar days.

What is the notice of non-payment deadline?

If Canada disputes all or part of a proper invoice, it must issue a notice of non-payment within 21 days of receiving the invoice, stating the amount withheld and why. Any amount not disputed must still be paid within the 28-day window. Ontario's Construction Act uses a 14-day notice instead, which is why this tool branches on the regime.

How fast does payment flow down the chain?

Each party pays the tier below within 7 days of being paid. So if Canada pays the contractor on day 28, the contractor must pay its subcontractors by day 35, and a sub must pay its own sub-subcontractor by day 42. The 7-day clock is measured from the day each party actually receives payment.

Does federal or provincial prompt payment apply to my project?

It depends on where the work is. The federal Act carves out designated provinces. Where a province has its own designated prompt-payment regime, such as Ontario, Alberta, Saskatchewan, or Manitoba, federal construction work in that province follows the provincial rules instead. Pick the Ontario tab for its timeline, and for the other designated provinces confirm the local rules before relying on a date.

What interest applies to a late payment?

Under the federal Act, an amount paid late carries interest at the average bank rate plus 3% per year, calculated as simple interest. The exact amount depends on the current average bank rate and the number of days overdue, so this tool states the rule rather than computing a figure.

Is this prompt payment calculator free?

Yes, free and no signup. It counts the statutory calendar-day deadlines from the date you enter. Treat the result as guidance, not legal advice, and confirm against the governing Act and your contract.

Keep building your bid

Find construction contracts to bid

We'll send the open Canadian government construction contracts that match your trade, free.

By subscribing you agree to receive weekly government tender digest emails from Wonable. Unsubscribe anytime.