How to Get Paid on Time as a Contractor in Canada (Deposits, Invoices, Late Payment)
Deposits, progress billing, clear invoices and friendly follow-ups: how Canadian contractors stop chasing money and get paid faster.
Doing the work is only half the job. Waiting 45 days for the last 30% of a project drains cash and wastes your evenings. Most late payment is preventable with better terms set before the job starts.
Set payment terms in the quote
Put the deposit, the schedule and the due date on the quote, so the client agrees to them when they accept. A line such as "20% deposit on acceptance, 40% at rough-in completion, 40% on completion; invoices due on receipt" removes ambiguity.
Always take a deposit
A deposit covers materials, books your crew and shows commitment. For small repairs it can be modest. For custom or special-order work it should cover the order. Check your province's rules on deposits for home renovation contracts.
Bill in stages on larger jobs
Progress billing ties payments to visible milestones (demolition done, rough-in inspected, drywall complete). It keeps your cash flow healthy and gives the client a clear sense of progress.
Send the invoice the same day
Invoices sent late get paid late. Send the invoice at the moment the work is accepted, with the amount, taxes, due date and ways to pay. Make paying easy: e-transfer, card or bank payment with a link they can tap.
Follow up politely and on schedule
- Day before due: a friendly reminder.
- Day after due: a short text or email with the invoice attached.
- Seven days late: a call.
- Beyond that: a written notice, then your formal options.
Know your lien rights
Construction lien rules differ by province, with strict deadlines that vary (for example Ontario's Construction Act and Quebec's legal hypothec regime). If a client stops paying, check your province's deadlines quickly and consider legal advice, because missing the window can cost you the right.
Make it routine
Contractors who get paid on time do the same steps every time. Tools such as quoting and invoicing software built for contractors keep the quote, the invoice and the follow-up in one place, so nothing relies on memory. If you are starting from scratch, see how to write a professional quote with payment terms included.