HPAC Magazine

NTCCC Summit moves the prompt payment agenda forward

April 13, 2015 | By HPAC Magazine

Representatives of Canada’s trade contract communities met in Ottawa on April 8, 2015 to discuss the urgent need for federal and provincial governments to adopt prompt payment legislation. The National Trade Contractors Coalition of Canada (NTCCC) Prompt Payment Summit allowed members to highlight progress that has been made at the provincial level and to discuss the next steps for seeing these initiatives through. The summit also focused on strategies to engage other concerned stakeholders who operate regionally and at the federal level.

Trade contractors perform more than 80 per cent of all construction work in Canada. NTCCC reports that those contactors routinely receive late payments from general contractors, which has resulted in cash flow problems that discourage hiring, investments in capital, and in some cases even bankruptcy. This has a very real impact on the economy as fewer contractors can bid on projects, thus driving employment down and preventing apprentices from opportunities to train. The adoption of prompt payment legislation would stimulate the construction sector at no direct cost to government, while bringing Canada in line with all other comparable jurisdictions.

“This issue is hurting families, young people looking for work, and costing small businesses money all across the country,” said Richard McKeagan, president of the Mechanical Contractors Association of Canada. “Governments should be aware that the lack of prompt payment legislation in Canada is a barrier to prosperity, and we’re proposing a painless fix.”

NTCCC reports that in the U.S. 49 of the 50 states 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.

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. Members include: Canadian Automatic Sprinkler Association, Mechanical Contractors Association of Canada, Thermal Insulation Association of Canada, Heating Refrigeration and Air-Conditioning Institute of Canada-Contractors Division and the Sheet-Metal Contractors Association, among others.



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