“…affecting any contracts signed after October 1st, 2019 in Ontario; public, private, or P3 .” Any of your clients rush a contract before the end of September? Chances are they were well aware of the Construction Act adjustments affecting any commitments authorized after October 1st, 2019 in Ontario; public, private, or P3.
The final changes including prompt payment regime, proper invoice, and accelerated dispute resolution are now live in ContractComplete so you can create your proper invoices now! Today, we are taking a closer look at the requirements of an Ontario PROPER INVOICE.
An invoice can also be known as a progress draw, progress payment, request for payment, statement of charges or written bill for services or materials in respect of improvement under a contract.
- A proper invoice must be provided to an owner on a monthly basis unless the agreement stipulates otherwise.
- new proper invoice notion is non-relevant to, for instance, subcontractor invoices to prime or invoices from sub-subcontractors/suppliers to subcontractors.
Contractors can avoid rejected invoices by double-checking their payment documents include these 6 items:
1. WHO is paying this Proper Invoice?
- Firstly, indicate the name, title, telephone number and mailing address of the person-client-project owner-purchaser to whom payment request is to be sent; and any other information that regulations and/or the contract prescribe.
2. HOW much does it cost?
- Secondly, the amount payable for services or materials supplied and payment terms;
- Hint: New payment terms require full payment 28-days following the reception of “proper invoice”. The contract manager must deliver approval or rejection notice within 14 days following the bill receipt date.
3. WHO ordered the work and material for this Proper Invoice?
- Thirdly is information identifying the authority under which services or materials were supplied; this is often the payment certifier.
- Clearly identifying the consultant managing your contract; this could be a civil engineer, mechanical engineer, architect, landscape architect, construction manager
4. HOW much is the contractor supplying or completing?
- A description including quantity/percentage of the services completed or materials supplied;
- Oftentimes the contractor includes an itemized bill of quantities or schedule of prices documenting previously approved work completed/materials supplied + due amounts for the current payment period
5. WHEN did the contractor complete the service?
- The delivery timestamp of the proper invoice and the timeframe during which the services and/or materials were supplied;
- Start and finish dates showing the time period of completion; materials supplied. Additionally, the completion/delivery date for the invoice/request for payment
6. WHO are you?
- Lastly, the contractor’s name and address;
- For example people asking for payment will have a name and location.
Final Thoughts on Making a Proper Invoice
On top of having all the right information on your next invoice, it would be advantageous to review the prompt payment, accelerated dispute resolution, lien, and holdback amendments in order to avoid issues. According to construction law professionals, the best advice is having accounting and/or specific contract management systems in place, a notice of non-payment ready and a process to properly dispute conflicts. Using the above tools and strategies you can ensure each invoice you produce is compliant with the Ontario “Proper Invoice” rules so you don’t need to worry.
ContractComplete supports collaborative unit-price contract administration, bid-management, and estimating for engineers, architects, construction managers and general contractors. We work with prime contractors, subcontractors and trades who work in paving, roofing, landscape, fencing, concrete, electrical, mechanical, civil, earthworks, and utilities. They rely on our affordable cloud-based platform for proposing changes/extras/additionals, swiftly generating accurate invoices, tracking progress/payments, and quoting.
Alex Aubry
Staying active and busy is the highest priority for Alex. On the squash court, hockey rink or golf course; this is where you will find him when he isn't working, exploring local history, brewing ales, or attempting to art. "Reality leaves a lot to the imagination" ~ AE
