Prompt Payment – Do You Know the Timelines?

Bill 38:  (“Bill 38”) seeks to amend The Builders’ Liens Act to establish a prompt payment scheme in Manitoba. Bill 38 is not yet in force, but businesses should be taking steps now… Learn More

Author(s): Bailey Harris,   Jarrod Sundmark

published 03/19/2024

Bill 38:  (“Bill 38”) seeks to amend The Builders’ Liens Act to establish a prompt payment scheme in Manitoba. Bill 38 is not yet in force, but businesses should be taking steps now to familiarize themselves with the payment timelines and what is necessary to ensure that their billing practices can be amended to accord with what will be legally required of them.

Please read our previous article, which provides an overview of Bill 38.

We have provided examples below which outline the new payment timelines in two scenarios:

Scenario A: when the “proper invoice” is accepted and each party down the chain pays on time, and
Scenario B: when an owner disputes a portion of a contractor’s “proper invoice.”

 

Scenario A: Proper Invoice Accepted and Paid on Time  
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Scenario B: Owner Disputes Portion of Proper Invoice
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Owners, contractors and subcontractors should be taking steps now to review their contracts, purchase orders, invoices, and other project documentation and practices to ensure a smooth transition to prompt payment. The TDS Construction Law Group can help our clients with this process. Contact us today.


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While care is taken to ensure the accuracy for the purposes stated, before relying upon these articles, you should seek and be guided by legal advice based on your specific circumstances. We would be pleased to provide you with our assistance on any of the issues raised in these articles.

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