Prompt Payment2019-12-09T11:10:36-05:00

The CISC is a strong advocate for implementing legislation that ensures timely payments to Canadian contractors and sub-contractors working on construction projects across the country. Through our ongoing efforts, alongside collaborations with industry partners, we have achieved several milestone accomplishments to date. We are seeing prompt payment and adjudication legislation being developed and implemented for the first time in Canada, ensuring that tradespeople will now be paid within a 30-day window—a huge leap forward from the current 90 days.

Our initiatives in promoting the importance of prompt payment and lobbying the need for immediate legislation has guaranteed that:

Quality companies will no longer go bankrupt due to untimely payments

Money will flow better through the construction supply chain

Companies will have the funds to invest into their businesses, meaning more hired apprentices and newer equipment

Reduced risk in business, resulting in competitive pricing in the market

We are proud to see Canada working towards finding a resolution to this systemic issue. We continue to provide support and work closely with each region’s provincial government, as well as with the federal government, to encourage the development of strong prompt payment legislation nationwide. There is a dire need to implement changes to the status quo in order to further the success of the Canadian construction industry and their tradespeople. We look forward to the progress of nationwide prompt payment legislation.

June 2019

British Columbia’s government announces their intention to modernize their existing construction legislation in order to help resolve their ongoing challenges of delayed payments in the province. Bill M223, the Prompt Payment (Builders Lien) Act, will follow a similar structure to Ontario’s Bill 142. The CISC continues to provide assistance and resources to bring this legislation to fruition.

May 2019

Since then, the Legislative Assembly of Saskatchewan passed the third reading of The Builders’ Lien (Prompt Payment) Amendment Act. Saskatchewan is now the third province to enact prompt payment legislation, alongside Ontario and Nova Scotia. The CISC has played an active role in communication with government officials to establish a strong legislation that supports Canadian construction workers in Saskatchewan.

April 2019

With the support of the CISC, Nova Scotia’s Bill 119, the Builders’ Lien Act (Amended) receives royal assent. This legislation includes prompt payment laws with the intention to provide the authority for establishing an adjudication process to resolve disputes faster when timelines are not met. Nova Scotia is now only one of two provinces to implement prompt payment legislation in all of Canada.

March 2019

In the federal budget announcement on March 19, 2019, Finance Minister Bill Morneau further solidified the Canadian government’s commitment to the implementation of federal prompt payment legislation and adjudicative measures. The Canadian Institute of Steel Construction (CISC) strongly supports the Canadian government’s action against the systemic issue of delayed payments in the construction industry.

The Nova Scotia government introduces prompt payment legislation. The CISC is an active member of the Nova Scotia Prompt Payment Coalition and will continue to support and carry out the efforts made to bring prompt payment legislation to the province.

February 2019

Nova Scotia government expresses their enthusiasm and commitment to introduce prompt payment legislation for the 2019 Spring Session. The CISC Atlantic region will continue to play an active role in advocating for the needs of the construction industry so that legislation will be developed with Canadian tradespeople in mind.

November 2018

Finance Minister Bill Morneau announces the federal government’s commitment to passing prompt payment legislation with the 2018 Fall Economic Statement. The CISC was instrumental in one of Canada’s largest and most extensive cross-nation consultation processes, providing valuable recommendations that advocate the importance of timely payments.

June 2018

Saskatchewan’s government announces their commitment to introduce amendments to the current Builders’ Lien Act. These changes will include prompt payment and adjudication provisions that ensures invoices are paid within a 30-day window.  The CISC will continue to help develop the communication strategy, while meeting with government officials to promote the need for prompt payment legislation.

April 2018

With the implementation of Ontario’s Bill 142 as a guide, as well as with the support from the CISC, Manitoba introduces and passes second reading of Bill 218, the Prompt Payments in the Construction Industry Act. This bill proposes payment obligations ensuring that all those involved in a construction contract will be paid within reasonable time frames. If not, the defending contractor or subcontractor will have the right to dispute resolution.

January 2018

The Canadian federal government calls on the construction industry to develop Bill S-224, the Canada Prompt Payment Act. With the recommendations of the CISC, industry stakeholders and the leading consultants who assisted in implementing Ontario’s Bill 142, the Canadian government will develop legislation to ensure the timely flow of payments from contractors to subcontractors who work on federal government projects.

December 2017

Quebec passed Bill 108, an Act to facilitate oversight of public bodies’ contracts and to establish the Autorité des marchés publics. This allows the provincial government to implement pilot projects intended to test various construction law reforms for public contracts and subcontracts. The assessments will include a prompt payment regime, adjudication and accountability reporting measures. The CISC will continue to maintain an open dialogue with the provincial government about the importance of prompt payment to ensure the right legislation is developed in Quebec.

With the ongoing advocacy efforts of the CISC, Ontario enacts prompt payment legislation through reforms of the existing Construction Lien Act. Bill 142, the Construction Lien Amendment Act, is the first prompt payment regime of any kind in Canada and creates a new standard for other provinces to follow.

Ongoing developments

  • British Columbia Law Institute is in the process of reviewing the province’s current Builders’ Lien Act as part of the Builders Lien Reform Project.
  • As of April 2016, Alberta Infrastructure introduced prompt payment clauses in its various contracts.
  • The New Brunswick Legislative Services Branch is considering the addition of a prompt payment scheme and an expedited dispute resolution scheme to the Mechanics’ Lien Act (1973), the main Construction Law statute in the province.

“Prompt payment legislation with adjudication is one of the most important and needed corrective measures in the Canadian construction industry. It not only provides a speedy resolution to payment disputes of the original contract, but it can also be applied to correct the dysfunctional process of approving and paying for project changes. Ontario was the first to achieve this goal and we are seeing the dominos beginning to fall across the country.”

Ed Whalen, P.Eng., President & CEO, CISC

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