RTA · Prompt Payment and Construction Lien Act
Part 3 — Prompt Payment
32.3 Payment deadlines - contractor to subcontractor
subsection (6), a contractor who receives full payment of a proper
invoice within the time specified in section 32.2(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 with the contractor that were
included in the proper invoice.
(2) Subject to the giving of a notice of non-payment under
subsection (6), if the payment received by the contractor from the
owner is only for a portion of the amount payable under a proper
invoice, the contractor must, no later than 7 days after receiving
payment, pay each subcontractor the amount paid by the owner for
the work done or materials furnished under a subcontract with the
contractor that were included in the proper invoice.
RSA 2000
PROMPT PAYMENT
(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 owner 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 section 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 subsection (5) or (6), as the case may be, if the
owner does not pay some or all of the amount payable under a
proper invoice within the time specified in section 32.2(1), the
contractor must, no later than 35 days after giving the proper
invoice to the owner, pay each subcontractor the amount payable to
each subcontractor for the work done or materials furnished under
a subcontract with the contractor that were included in the proper
invoice to the extent that the contractor was not paid in full under
subsection (2).
(5) Subsection (4) does not apply in respect of a subcontractor if,
no later than the date specified in subsection (7), the contractor
provides to the subcontractor the following:
(a) a notice of non-payment , in the prescribed form and
manner,
(i) stating that some or all of the amount payable to the
subcontractor is not being paid within the time
specified in subsection (4) due to non-payment by
the owner, and
(ii) specifying the amount not being paid;
(b) an undertaking to refer the matter to adjudication under