Earlier this year, the Canadian government announced their decision to move forward with federal prompt payment legislation by seeking out industry recommendations. The government sought out the help of Sharon Vogul and Bruce Reynolds, the leading consultants in the successful implementation of Ontario’s Bill 142, to provide a review.

The Government of Canada has released the commissioned report by Vogul and Reynolds on August 2, 2018. In the report, they have outlined the need for prompt payment and adjudication legislation for federal projects across Canada. In order to ensure that cash flows down the construction supply chain promptly, their recommendations suggest a 30-day payment period in which all invoices should be paid. This solution is being structured similarly to the legislation that was introduced in Ontario in 2017.

The CISC continues to provide support and engage the Canadian government’s efforts in creating federal prompt payment legislation. We are pleased to see positive changes in the construction industry!

Click here to read report