Free construction-payment educationLesson 03 / Topic preview
When payment stops
Why an unpaid owner invoice does not automatically pause every obligation down the chain.
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The short version.
01
Each tier has obligations.
The owner, contractor and subcontractor have distinct payment and notice duties. Start by identifying who owes whom.
02
Receipt starts another clock.
In the ordinary Ontario cascade, a contractor generally pays the relevant subcontractor within seven days of receiving payment.
03
No payment does not mean no duty.
If the owner does not pay, other payment and notice rules can apply. Do not simply stop the clock.
04
A conversation is not enough.
Check the required notice, amount, reasons, timing and service. An upstream notice is not automatically a downstream notice.
05
Check the facts while there is time.
Keep notices and delivery evidence together. Source: Ontario Construction Act, sections 6.4–6.6. Get advice on a live dispute.