Holdback and prompt payment dates, worked out.

How the numbers work

• Holdback: under Ontario's Construction Act, the payer keeps back 10% of the value of work and materials supplied under each contract and subcontract.
• Prompt payment: for contracts the Act's prompt payment rules cover, an owner pays a proper invoice within 28 days of receiving it, unless it gives a notice of non-payment within 14 days. A contractor pays its subs within 7 days of being paid, and the same chain runs down to sub-subs.
• Lien period: a lien generally has to be preserved within 60 days after the certificate of substantial performance is published, or after the last supply of work or materials.
• Holdback release: once the lien period runs out with no liens preserved, the holdback becomes payable, unless the owner published a notice of non-payment of holdback within 40 days of the certificate.

Before you release a payment

A payment date is also the moment to check the sub's papers. In Ontario, a contractor who hires a subcontractor without a valid WSIB clearance certificate can be held responsible for the premiums that sub owes WSIB (Workplace Safety and Insurance Act, section 141). See the compliance checklist for what to have on file.

Keeping it current without chasing

SubProof gives each subcontractor a private upload link, no account needed. It reads the expiry dates you enter, shows every sub as covered, expiring or expired, and emails the sub 30, 14 and 7 days before a document runs out and on the day. You get a Monday summary of who needs attention before you approve the week's payments.

Calendar days, counted from the dates you enter. Deadlines that land on a weekend or holiday can roll to the next business day. Older contracts, public contracts and contract terms can change these rules, and the Act is amended from time to time. General information, not legal advice: confirm with your lawyer before you rely on a date.