6 “Proper Invoice” Requirements

“…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. Today, we are taking a closer look at the requirements of a PROPER INVOICE. 

An invoice may 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 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?

project owner client purchaser paver roofer landscaper concrete electrician HVAC earthworks agreement CCDC 2 proper invoice
  •  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 may be prescribed by the contract and/or by Regulations.

2. HOW much does it cost? 

holdbacks retainage receivable taxes amount payable for work completed inspection of work scope improvements
  • 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”. Approval or rejection notice must be delivered 14 days following the bill receipt date.

3. WHO ordered the work and material?

certify payment inspection consultant controller 14 days rejection approval
  • 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 was supplied/completed?

detailed appendix line item scope of work completed measured by quantities or percentage
  • A description including quantity/percentage of the services completed or materials supplied;
    • Oftentimes a bill of quantities, schedule of prices, an itemized statement is included; documenting previously approved work completed/materials supplied + due amounts for the current payment period

5. WHEN was the service completed?

start and finish dates for work completed delivery of statement date timestamp
  • 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 work was completed; materials supplied. And, the date the invoice/request for payment is completed and delivered 

6. WHO are you?

send payment location contact information
  • The contractor’s name and address;
    • Most people asking for payment will have a name and location.

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. 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.

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.

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

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