Prompt Payment Timelines

 

Under the Act, outstanding amounts between an Owner and Contractor must be paid within 28 days or a "Notice of Non-Payment" be issued within 14 days of receipt of a proper invoice by the Owner.  In a non-dispute scenario, each party down the chain pays its subcontractors within 7 days of payment receipt.  There are maximum deadlines for each level of sub-contractors, calculated from the trigger date of the Invoice.  Therefore, if the Contractor is paid by Owner on day 28, its subcontractor must be paid day 35, the sub-subcontractor by day 42, etc.  However these are maximum deadline, each party must pay its suppliers and trades within 7 days of payment receipt.  Similar chain is instigated when the Owner issues a "Notice of Non-Payment and triggers a dispute scenario.  However, as the Owner must issue the Notice within 14 days the maximum deadlines are earlier.  The  contractor must issue its subcontractor a notice by day 28, the sub-subcontractor by day 35 etc.  Each party must also undertake adjudication withing 21 days of receipt of "Notice of Non-Payment".   In instance where the Contractor does not receive either payment or a Notice by day 28 of invoice, it must still adhere to its payment deadlines with the subcontractor or issue a Notice down the line.  For a visual of these scenarios and table with deadlines download our cheat sheet here. 

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