Sales / Rentals / Installation / Training 146 Millwick D Toronto, ON M9L T: (416) 248- Toll Free: 1(855) 248- Email: info@ACEco www.ACEco Sales / Rentals / Installation / Training 146 Millwick Drive, Toronto, ON M9L 1Y6 T: (416) 248-6600 Toll Free: 1(855) 248-6600 Email: info@ACEcorp.ca www.ACEcorp.ca Sales / Rentals / Installation / Training 146 Millwick Drive, Toronto, ON M9L 1Y6 T: (416) 248-6600 Toll Free: 1(855) 248-6600 Email: info@ACEcorp.ca www.ACEcorp.ca 146 Millwick Drive, Toronto, ON M9L 1Y6 T: (416) 248-6600 Toll Free: 1 (855) 248-6600 Email: info@ACEcorp.ca www.ACEcorp.ca The definition of a “proper invoice” requires that the invoice contain the following information: •  the contractor’s name and address; •  the date of the proper invoice and the period during which services or materials were supplied; •  information identifying the authority (typically the contract) under which services or materials were supplied; •  description, including quantity, of the services or materials supplied; •  the amount payable for services or materials supplied and the payment terms; •  the name, title, telephone number, and mailing address of the person to whom payment is to be sent; and •  any other information that may be prescribed by the contract. Additionally, the contract may add further requirements for a proper invoice. PAYMENT PERIOD Upon submission of a proper invoice, the owner shall pay the amount payable within 28 days (unless the owner delivers a notice of non-payment). A contractor who receives full payment of a proper invoice within the 28 days must, no later than seven days after receiving payment, pay each subcontractor who supplied services or materials included in the proper invoice. A contractor who receives partial payment of a proper invoice must, no later than seven days after receiving payment, pay each subcontractor who supplied services or materials included in the proper invoice, the amount earmarked for that subcontractor or, where no amount is specifically identified, pay the subcontractors on a pro-rata basis. PAYMENT WITHHELD An owner who disputes a proper invoice can refuse to pay all or any portion of a proper invoice if, no later than 14 days after receiving the proper invoice, the owner gives the contractor a notice of non-payment (in the prescribed form and manner) specifying the amount not being paid and detailing all of the reasons for non-payment. If only a portion of the invoice is disputed, the owner must still pay the undisputed amount within 28 days. As with an owner, a contractor can dispute a subcontractor’s entitlement to payment, in whole or in part, within the time specified if the contractor gives notice of non-payment to the subcontractor no later than seven days after receipt of a notice of non-payment from the owner or, if no notice is given by the owner, no later than 35 days after the proper invoice was given to the owner. The notice of non-payment again shall be made in the prescribed form and manner, detailing the amount not being paid and the reasons for non-payment. The same applies to payments from subcontractors to subcontractors. REMEDIES IN EVENT OF NON-PAYMENT If the owner does not pay some or the entire invoice to the contractor, the contractor has two options: •  to pay the subcontractor no later than 35 days after giving the proper invoice to the owner; or •  to give notice of non-payment to the subcontractor no later than seven days after receiving notice of non-payment from the owner or, if no notice is given by the owner, before the expiry of the 35 days from delivery of the proper invoice to the owner. If an amount is not paid when it is due under this part of the Act, interest will accrue on the outstanding balance at the prejudgment interest rate determined under section 127(2) of the Courts of Justice Act or, if the contract/subcontract specifies a different interest rate, the greater of the two rates. ACCESS CANADA WINTER 2018 13