Late payment has become a systemic problem in Ontario’s construction industry. Over the last ten years, the average age of receivables in the construction industry has increased, with payers in all sectors routinely paying late, creating problems for all concerned. Many construction companies are struggling to meet the new legal requirements which only allows 14 days to dispute an invoice because of the way in which invoices and claims are processed.
In an effort to curb the trend of elongated payment durations, the prompt payment and adjudication amendments to the Construction Act were introduced in October 2019, which presented a strict prompt payment regime in Ontario, changing the future of the Canadian construction industry for good.
For many construction companies and contractors, this law is an administrative headache. However, the introduction of technology, such as OnePosting allows companies to adhere to these strict timelines for prompt payment and adjudication. Let’s take a closer look at how OnePosting and our invoice technology can help the construction industry get paid on time, in addition to streamlining the invoice approval process, releasing staff to focus on more productive activities, and removing paper handling and storage.
Continue reading Is your firm compliant with the Ontario Construction Act?