MHHS · Prompt Payment and Construction Lien Act
Part 5 — no later than 21 days after giving the notice to the subcontractor; (c) a copy of any notice of dispute given by the owner under subsection 32.2(2). (6) A contractor who disputes, in whole or in part, the entitlement of a subcontractor to paymen
32.5 Payment deadlines - subcontractor to subcontractor
full payment from a contractor in respect of a proper invoice within
the time specified in section 32.3(1) must, no later than 7 days after
receiving payment, pay each subcontractor the amount payable to
the subcontractor for the work done or materials furnished under a
subcontract between them that were included in the proper invoice.
(2) Subject to the giving of a notice of non-payment under
subsection (7), if the payment received by the subcontractor from
the contractor is only for a portion of the amount payable to the
subcontractor in respect of a proper invoice, the subcontractor
must, no later than 7 days after receiving payment, pay each
subcontractor the amount paid by the contractor for the work done
or materials furnished under a subcontract between the
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subcontractor and the other subcontractors that were included in the
proper invoice.
(3) For the purposes of subsection (2), if more than one
subcontractor is entitled to payment, payment must be made in
accordance with the following rules:
(a) if the amount not paid by th e contractor is specific to the
work done or materials furnished by a particular
subcontractor or subcontractors,
(i) the other subcontr actors must be paid, and
(ii) any amount paid by the owner with respect to the
subcontractor or subcontractors who are implicated
in the dispute mentioned in subsection 32.2(2) must
be paid to the subcontractor or subcontractors on a
proportionate basis, as applicable;
(b) in any other case, all subcontractors must be paid on a
proportionate basis.
(4) Subject to subsections (6) and (7), if the contractor does not
pay some or all of the amount payable to a subcontractor in respect
of a proper invoice within the time specified in section 32.3(1), the
subcontractor must, no later than the date specified in subsection
(5), pay each subcontractor the amount payable to each
subcontractor for the work done or materials furnished under a
subcontract with that subcontractor that were included in the proper
invoice to the extent that the subcontractor was not paid in full
under subsection (2).
(5) For the purposes of subsection (4), the subcontractor must pay
the amounts no later than
(a) 7 days after the subcontr actor receives payment from the
contractor, or
(b) if no payment is made by the contractor to the
subcontractor, 42 days after the proper invoice was given
to the owner.
(6) Subsection (4) does not apply in respect of a subcontractor if, no
later than the date specified in subsection (8), the subcontractor
required to pay under subsection (4) gives to the other subcontractor,
the following:
(a) a notice of non-payment , in the prescribed form and
manner,
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(i) stating that some or all of the amount payable to the
subcontractor is not being paid within the time
specified in subsection (5) due to non-payment by
the contractor, and
(ii) specifying the amount not being paid;
(b) unless the failure of the contractor to pay is as a result of
non-payment by the owner, an undertaking to refer the
matter to adjudication under Part 5 no later than 21 days
after giving the notice to the subcontractor;
(c) a copy of any notices of dispute or non-payment, as the
case may be, received by the subcontractor in relation to
the proper invoice.
(7) A subcontractor who disputes, in whole or in part, the
entitlement of another subcontractor to payment of an amount
under the subcontract may refuse to pay all or any portion of the
amount within the time specified in subsection (1) or (2), as the
case may be, if, no later than the date specified in subsection (8),
the subcontractor gives to the other subcontractor a notice of
non-payment, in the prescribed form and manner, specifying the
amount that is not being paid and detailing all the reasons for
non-payment.
(8) For the purposes of subsections (6) and (7), the subcontractor
must give notice no later than
(a) 7 days after receiving a notice of non-payment from the
contractor under section 32.3(5) or (6), or
(b) if no notice was given by the contractor, before the expir y
of the period referred to in subsection (5)(b).
(9) Subsections (1) and (2) apply, with necessary modifications, in
respect of any amount that is the subject of a notice under
subsection (6), once the amount is paid by the contractor.
(10) On the request of a subcontractor who is required to make
payments in accordance with this section, a contractor must, as
soon as possible, provide to the subcontractor confirmation of the
date on which the contractor gave a proper invoice to the owner.
(11) This section applies, with necessary modifications, in respect
of a subcontractor who is entitled to payment in accordance with
this section and any amounts payable by that subcontractor to any
other subcontractor under a subcontract in respect of the work done
or materials furnished.
2020 c30 s14
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