Government makes move to prioritize Prompt Payment
October 18, 2017
Prime Minister Justin Trudeau has given the Hon. Carla Qualtrough, Minister of Public Services and Procurement instruction to prioritize prompt payment for contractors and sub-contractors who do business with her department.
The additional supports calls from the vast majority of the construction industry to address the urgent problem of payment delays which reduce cash flow, decrease efficiency, and hurt small businesses and their employees.
“Our members are excited and energized by the government’s commitment to tackle the issue,” said John Galt, chair of the National Trade Contractors Coalition of Canada (NTCCC). “We know that the government understands it can reduce costs to taxpayers and improve operations by taking action on payment delays.”
NTCCC has worked constructively with political leaders and Public Services and Procurement Canada officials to ensure the federal government has a plan that is consistent with its goal of modernizing procurement practices.
“Contractors from many trades and labour leaders have been very supportive of a legislative solution to this problem,” added Galt. “We have been grateful for the tireless work of Senator Don Plett and the many senators who supported Bill S-224.”
The NTCCC is looking forward to further discussion with departmental officials and Members of Parliament as the federal government makes progress on this issue.
In Ontario, Bill 142, the Construction Lien Amendment Act, moved to committee on October 4, 2017 at Queen’s Park with unanimous support at second reading. Bill 142 is the product of many years of advocacy from Prompt Payment Ontario, with substantial expert review from leaders in construction law. The principles of that bill are expected to provide an effective template for the federal government and other provinces that wish to improve productivity in their construction sectors.
NTCCC looks forward to other provinces moving towards having a prompt payment regime.