Construction and trades accountant in Calgary

Holdbacks, prompt payment and the slips that follow

Construction accounting goes wrong in places other industries never encounter. Alberta moved to the Prompt Payment and Construction Lien Act in August 2022, which sets a 28 day window for an owner to pay a proper invoice and 7 days for a contractor to pay subcontractors after being paid. Statutory holdbacks still apply on top. Revenue recognised, cash received and amounts still held back can be three very different numbers in the same month.

If those are not tracked separately the books show a profit that has not arrived, or a loss that is only a timing difference. HBT keeps holdbacks, progress billings and retainage visible rather than buried, prepares the T5018 slips for payments to subcontractors, and coordinates GST and WCB reporting alongside the year end so the whole picture reconciles.

What a construction engagement usually covers

How the work begins

1. 1

   Step 1: Map how you bill

   Progress billing, holdback terms, how many subcontractors, and which accounts are already behind.

2. 2

   Step 2: Scope and fee agreed

   Including slip volumes and any catch up, priced and confirmed before paid work begins.

3. 3

   Step 3: Tracked through the season

   Monthly books, GST on schedule, slips prepared on time, year end without a reconstruction.

Do you prepare T5018 slips for subcontractor payments?

Yes. T5018 preparation starts at $150 per slip. Construction businesses that pay subcontractors generally have to report those payments to the CRA on the T5018 information return. We prepare the slips as part of the year end work and keep the underlying subcontractor records through the year so the filing is not assembled from scratch.