Small Claims Court for Unpaid Construction Invoices in Ontario

The $50,000 limit — and what it covers

Small Claims handles claims up to $50,000, not counting interest and costs. The limit applies to the whole claim, across all the people you sue. If you’re owed a bit more, you can give up the excess to stay in Small Claims.

• Contract debts: yes — the unpaid invoice is the bread and butter of this court.
• Liens: no. A lien can only be enforced in the Superior Court, and suing in Small Claims does nothing to protect or extend a lien.
• Trust claims against directors: in principle yes, up to the limit — Small Claims can hear claims for money based on a trust. A claim that needs tracing or a full accounting may belong in the Superior Court.

Before you file: demand letters and collection agencies

No law says you have to send a demand letter first, but it’s usually smart. A good one includes the exact amount with the invoices, interest at your contract rate, a firm deadline of 10 to 14 days, and what happens next. Ask them to confirm the balance in writing — a signed acknowledgment of the amount restarts the two-year limitation clock.

• A lawyer’s demand letter usually runs $300 to $1,500; a paralegal’s, $200 to $500.
• Never let a demand-letter deadline run past your lien deadline.
• Don’t threaten criminal charges to get paid.
• Collection agencies typically take 20% to 35% of what they collect, up to 50% on old accounts — and they can’t register a lien or bring a trust claim for you.

Naming the right defendant

Sue the company that actually owes you, using its exact registered name from the Ontario Business Registry. A wrong name can make your judgment unenforceable — and you won’t find out until you try to collect. If someone personally guaranteed the account, name them separately. Directors who may be liable for a breach of trust are a separate claim; see trust claims.

Steps and a realistic timeline

Uncontested, you can have a judgment in a couple of months. If they fight it, plan on 10 to 18 months. You can act for yourself or hire a licensed paralegal or a lawyer. Win, and you can usually recover representation costs of up to 15% of the amount claimed, plus your filing fees.

Winning versus getting paid

A judgment is a piece of paper. Turning it into money is a second job:

• Garnishment of bank accounts, or of wages — generally up to 20% of an individual’s wages.
• A writ of seizure and sale against land or personal property. It lasts six years and can be renewed, and it blocks the debtor from selling or refinancing land.
• An examination hearing, where the debtor answers questions about their money under oath.

What if the company has no assets?

Then look at the people behind it: a trust claim against the directors, any personal guarantee, the oppression remedy where principals abandoned one company and carried on in another, and transfers made to dodge creditors. Before you spend money suing, spend $8 and ten minutes checking whether there’s anything to collect.

Questions trades ask

Not legal advice. This is general information from an Ontario builder, current to October 2026. Your dates and rights depend on your contract and your facts — confirm them with an Ontario construction lawyer before you rely on them. Read the Construction Act on ontario.ca.

Getting paid: the full set of guides