{"id":1106,"slug":"ontario-construction-act-2026-7-day-deeming-rule","title":"Ontario Construction Act Jan 1 2026 — new 7-day \"proper invoice\" deeming rule; 28-day owner-to-contractor clock runs from deemed receipt","kind":"reference","scope":"business","status":"current","audiences":["kevin","candid-team"],"topics":["gc-vertical","builder-economics","construction-act"],"reference_body":"**Claim:** Bill 60 (Fighting Delays and Building Faster Act, 2025), in force January 1, 2026, adds a **7-day deeming rule** to the Construction Act's prompt-payment regime: an invoice that does not meet the requirements of a \"proper invoice\" is now **deemed proper** unless the owner objects within 7 days. The 28-day owner-to-contractor payment clock then runs from deemed receipt.\n\nThis closes a previously-exploited loophole — owners could indefinitely delay the 28-day clock by claiming invoices weren't \"proper.\"\n\n**Source:** Robins Appleby LLP (2026), \"Key changes to Ontario's Construction Act introduced by Bill 216 and Bill 60.\" https://www.robinsappleby.com/publication/key-changes-to-ontario-s-construction-act-introduced-by-bill-216-and-bill-60. See also Bennett Jones LLP, \"Updates to Prompt Payment Legislation in Ontario, British Columbia and Alberta.\" https://www.bennettjones.com/Insights/Blogs/Updates-to-Prompt-Payment-Legislation\n\n**Confidence:** Verified.\n\n**For Candid:** The 7-day deeming rule shifts cash-flow risk slightly back toward owners but does not eliminate the underlying 28-day owner / 7-day sub mismatch that drives GCs' short time horizons. Long-payback marketing investments still compete against an empirically calibrated short-cash-cycle reference point ([[koszegi-rabin-2006-reference-dependent-preferences]]).\n\n**Cross-reference:** Existing entry [[construction-act-prompt-payment-oct-2019-jan-2026]] gives the regime overview; this entry isolates the specific 2026 amendment.","rationale_body":null,"metadata":null,"links":{"outgoing":[{"slug":"research-brief-risk-aversion-post-failure-may-2026","title":"Research brief: risk aversion, loss aversion, and post-failure decision patterns in GC and trades-business decision-makers (May 2026)","kind":"reference","scope":"business","link_type":"relates-to"},{"slug":"construction-act-prompt-payment-oct-2019-jan-2026","title":"Ontario Construction Act prompt-payment regime — Oct 1, 2019; Bills 216 and 60 amendments effective Jan 1, 2026","kind":"reference","scope":"business","link_type":"relates-to"}],"incoming":[{"slug":"ontario-construction-act-2026-mandatory-annual-holdback-release","title":"Ontario Construction Act Jan 1 2026 — mandatory annual release of accrued 10% holdback for contracts > 1 year","kind":"reference","scope":"business","link_type":"relates-to"}]},"created_at":"2026-05-25T13:13:31.022Z","updated_at":"2026-05-25T13:13:31.022Z"}