When is each Ottawa progress payment due?

Progress payments in Ottawa construction projects are typically tied to project milestones, not calendar dates — and Ontario's Construction Act sets out the legal framework that governs when those payments must be made.

Ontario's Construction Act (updated significantly in 2019) introduced a mandatory prompt payment regime that applies to most construction contracts in the province, including residential renovations in Ottawa. Under this system, once a contractor submits a "proper invoice," the owner has 28 days to pay. If there's a dispute, the owner must issue a written "notice of non-payment" within that window — silence is not an acceptable response, and failing to pay on time can trigger adjudication.

That said, most residential renovation contracts in Ottawa structure payments around project milestones rather than invoices on a fixed schedule. A typical breakdown looks like this:

• Deposit (10–25%) — Due at contract signing to secure materials and scheduling
• Mobilization / Demo complete (20–25%) — Due when work begins or rough demo is finished
• Rough-ins complete (20–25%) — After framing, electrical rough-in, plumbing rough-in, and inspections pass
• Substantial completion (20–25%) — When the project is functionally complete and usable
• Holdback / Final payment (10%) — Released after deficiencies are corrected

The 10% holdback is not optional — it's a legal requirement under Ontario's Construction Act. You must retain 10% of every progress payment for a minimum of 60 days after substantial completion. This protects you if a subcontractor or supplier files a lien against your property for unpaid work.

Ottawa-specific consideration: The City of Ottawa requires inspections at key stages (framing, insulation, electrical rough-in, etc.). It's smart practice to tie your progress payment milestones to passed inspections, not just the contractor's word that work is done. For example, don't release the rough-in payment until the City inspector has signed off.

Before signing any contract, make sure the payment schedule is clearly written out with specific milestone descriptions — not vague language like "when work is progressing well." If a contractor asks for more than 25–30% upfront on a large project, that's a red flag worth questioning.

For any project over a certain size, it's worth having a construction lawyer or experienced project manager review your contract. You can also browse verified contractors in our Ottawa contractor directory who are familiar with proper payment structures and Ontario's Construction Act requirements.