Whether it’s a homeowner or a company that’s refusing to pay for contracted work, you need to know your legal rights. Recently, Gibson hosted a series of informative seminars for Ontario-based roofing contractors. The sessions outlined the important steps roofing company owners should take to protect themselves and ensure they get paid for their work.

Experts from Sutherland Law, specialists in resolving legal issues for the construction industry, provided valuable insights in the seminars for roofers. Here are some key takeaways:

Familiarize yourself with the Construction Act 

• The Construction Act in your province is designed to protect you and your company. View Ontario’s Construction Act. 

Understand Prompt Payment Provisions

• Prompt Payment Provisions outline the rules within the Construction Act for how and when parties should be paid.
• Everyone involved in a construction project, from the property owner to the smallest subcontractor, is responsible for prompt payment and entitled to proper invoicing.
• “Paid when paid” clauses are no longer allowed.

Know your Lien Rights

• If someone owes you money on a roofing project, you can register a lien on their property to seek payment. 
• A lien can help you get paid before anyone else … even in the case of bankruptcy. 
• Learn more about Lien Rights.

Understand the Dispute Resolution process

• Under the Construction Act, you can request Adjudication for a payment dispute.
• Adjudication can be used to enforce prompt payment and resolve other disputes.
• It’s only available before the contract is completed.
• Learn more about Ontario Dispute Adjudication for Construction Contracts.

Stay on top of your paperwork 

• Make sure your contracts are specific about the scope of work to be performed and the payment schedule
• Ask your Gibson Representative for good examples of professional roofing contracts
• Document everything in writing 
• Keep track of your dates on-site
• Deliver proper invoices on time
• Pay your suppliers and trades promptly
• Maintain accurate and up-to-date accounting records and document management 

If you want to learn more about your legal rights or have legal questions, contact Rob at Sutherland Law. Your Gibson Representative is always there to answer any business questions you might have. 

For more ideas on how to avoid common legal problems and get an edge on your roofing competition, check out this article:  Five ways for roofing business growth in 2024.