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Prompt Payment On The Horizon From Coast-To-Coast As Trade Contractor Summit Concludes

Apr 11, 2018

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Trade contractors and association leaders from across the country came together in Toronto on April 4th to discuss the progress that has been made both federally and provincially in adopting prompt payment legislation. The National Trade Contractors Coalition of Canada (NTCCC) Prompt Payment Summit heard from members to give presentations on new developments, hear from political champions, and to discuss strategies to advance the issue.

“In December of 2017, we saw the government of Ontario pass the first piece of prompt payment legislation in the country, in Bill 142, with unanimous support,” said Sandra Skivsky, NTCCC Chairperson. “We are now finally beginning to see the effects of all these years of work. The Federal government is committed to enacting legislation, and we can see a future where contractors are paid promptly.”

Trade contractors perform more than 80% of all construction work in Canada. There is currently no system in place that enforces payment procedures, and as a result, they routinely receive late payments. These inefficiencies lead to cash flow problems that ultimately discourage hiring, investments in capital, and even result in bankruptcy. The adoption of prompt payment legislation will ensure that contractors and subcontractors are paid within reasonable timeframes, removing the uncertainty that can slow projects and reduce productivity.

“Our goal is to improve the timeliness of payments throughout the construction industry, and to learn from other jurisdictions such as Ontario with Bill 142,” said Steve MacKinnon, Parliamentary Secretary to the Minister of Public Services and Procurement. “As we articulated a few months ago, we intend to legislate. From the Prime Minister on down, we’re excited to have this moving forward, and the argument is compelling.”

During the Summit, the NTCCC also announced that its board had elected a new chairperson, Sandra Skivsky. The Director of Marketing & Business Development for the Canadian Masonry Contractors Association, Skivsky was influential in the work of Prompt Payment Ontario in establishing prompt payment legislation in the province and has been involved with the NTCCC since 2006.