Late payments impact the economy: NTCCC
By HPAC MagazineHPAC General Management Small Business Management
Prompt payment was on the tips of many trade contractors' tongues on April 8.
The National Trade Contractors Coalition of Canada (NTCCC) Prompt Payment Summit on April 8 in Ottawa, ON highlighted initiatives meant to further progress in adopting prompt-payment legislation at the federal and provincial levels. The summit also focused on strategies to engage other concerned stakeholders who operate regionally and at the federal level.
“The lion’s share of construction in Canada is done by trade contractors and the money is supposed to trickle down from the top,” NTCCC director John Blair said in a release.
Trade contractors are concerned that late payments from general contractors result in cash-flow issues that discourage hiring, investment in capital and even bankruptcy – leading to fewer contractors bidding on projects and limiting apprenticeship opportunities.
“This issue is hurting families, young people looking for work, and costing small businesses money all across the country,” added Richard McKeagan, president of the Mechanical Contractors Association of Canada (MCAC).
According to the coalition, 49 of 50 states in the U.S. have adopted prompt payment legislation. Globally, the United Kingdom, Ireland, Australia, and New Zealand have also enacted these laws. Most recently, the European Union has adopted a Prompt Payment directive which all of its member states are required to translate into domestic law. Canada is the clear outlier.
“It is great to see how many organizations are committed to resolving this issue across jurisdictions,” added Blair. “This group is incredibly motivated and we’ll be engaging groups and governments at all levels to ensure prompt payment becomes a reality across Canada.”
The National Trade Contractors Coalition of Canada (NTCCC) was established in 2004 to provide an organized forum for Canada’s national trade organizations to share information, resources, and to collaborate on issues that are of common interest all. Its membership is comprised of: Canadian Roofing Contractors Association, Canadian Automatic Sprinkler Association, Canadian Masonry Contractors Association, Canadian Electrical Contractors Association, Mechanical Contractors Association of Canada, Interior Systems Contractors Association, Thermal Insulation Association of Canada, Heating Refrigeration and Air-Conditioning Institute of Canada-Contractors Division, Sheet-Metal Contractors Association, Canadian Institute of Steel Construction, and the Tile, Terrazzo, and Marble Guild.