Construction Prompt Payment Act

On November 27, 2025, Bill 20: Construction Prompt Payment Act received Royal Assent. When it is brought into force, the Act will ensure that businesses and their workers are paid promptly for the work they do and the materials they provide for construction projects. Specifically, the Act will: 

• Set clear timelines (generally 28 days) for payment on construction projects 
• Establish a fast-track adjudication process to resolve payment-related disputes within weeks, not months or years like in the courts 

The Act will be brought into force following a transition period. This will ensure the construction industry has the time it needs to get ready for the new rights and requirements. During the transition period, the government will continue to work with the industry to: 

• Prepare regulations
• Run education and awareness campaigns
• Determine exactly when and how to bring the legislation into force

Through the transition period, the government will also be working to set up the adjudication authority that will be responsible for overseeing the adjudication process.

Responsibility for the Act is in the process of being transferred from the Ministry of Attorney General to the Ministry of Infrastructure.  More information will be available soon about consultation on proposed regulations, the process to be undertaken to set up an adjudication authority, and the government’s targeted timeline for the Act’s coming into force.