Prompt Payment2022-01-18T16:52:07-05:00

Prompt Payment

As the leading organization driving prompt payment initiatives in Canada, the CISC continues to advocate the importance of enacting prompt payment legislation, both at the federal and provincial levels.

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, collaborating 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 in 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 to further the success of the Canadian construction industry and their tradespeople. We look forward to event more prompt payment legislation.

November 2021

BC Moving Forward With Prompt Payment Legislation

The Canadian Institute of Steel Construction (CISC) continues to push for the implementation of regulations and adjudication procedures that will bring the Federal Prompt Payment Act into force! 

The Canadian Institute of Steel Construction welcomes the announcement of a significant breakthrough by the British Columbia Construction Association (BCCA), confirming that the legal counsel of the BC’s Ministry of the Attorney General, the Honourable David Eby, committed to moving forward and tabling BC’s Prompt Payment Legislation in Fall 2022. 

Read more: 

Combat the Problem of Late Payments

In order to combat the problem of late payments, the Coalition Against Late Payments in Construction, of which the ACQ is a member, has developed a pilot project in the form of a web capsule to facilitate payment to companies that take part in public construction contracts.

Watch the capsule (available only in French)

October 2021

On October 20th, the Government of Saskatchewan announced that on March 1, 2022, the ‘Builders’ Lien (Prompt Payment) Amendment Act, 2019 will be proclaimed into force. This new provincial legislation and adjudication regulations will protect and define the rights and obligations of the construction industry stakeholders by establishing reasonable payment timelines for construction projects!

The CISC, as a strong advocate, continues to encourage the development of prompt payment legislation nationwide, determined to ensure timely payments for the Canadian construction industry.

We are pleased to have reached another important milestone in our on-going efforts!

Holding Pattern: Alberta Awaits Prompt Payment and Construction Lien Updates

Based on announcements by Service Alberta and the Minister, was that the prompt payment and adjudication regimes introduced in the PPCLA would take effect on July 1, 2021. Service Alberta still has no official date for the publication of the regulations, or for when the PPCLA will be proclaimed into force. In addition to requiring the finalization of the regulations, the PPCLA will require the Minister to appoint an authorized Nominating Authority who will be empowered to appoint adjudicators to decide disputes subject to the adjudication regime.

Read The Article

October 2020

Alberta’s Bill 37 was introduced on October 21, 2020 The Builders Lien (Prompt Payment) Amendment Act 2020,  it was to introduce timelines and rules for payments and liens in all construction industry sectors, ensuring contractors and subcontractors are paid on time.

The Builders’ Lien (Prompt Payment) Amendment Act, 2020 passed second reading on Oct. 28, 2020. A few days later, on November 4, a motion to amend Bill 37 (known as Amendment A1) was carried, resulting in changes to the bill’s prompt payment sections which now mirror the prompt payment language contained in Ontario’s Construction Act, and incorporate a cascading payment process once payment is made by the owner to the general contractor. If the bill passes, the government expects the minister to appoint authorized nominating authorities by April 2021 and for those authorities to appoint adjudicators a month later.

August 2020

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

Latest News