Anyone in the construction industry is aware of the negative impacts of delayed payments, particularly where small- and medium-sized businesses are concerned, and now, businesses in British Columbia’s construction sector will have greater peace of mind surrounding the certainty of payments thanks to new prompt payment legislation that ensures that contractors and subcontractors are paid fairly and on time.
“This legislation is about fairness. Getting paid on time shouldn’t be a struggle,” said Niki Sharma, Attorney General. “When contractors and workers are paid fairly and on time, projects stay on track and on budget, small businesses are stronger, and jobs are more secure. By setting clear rules for payment and providing an efficient way to resolve disputes, we are supporting jobs and helping B.C.’s economy grow.”
The new legislation sets clear timelines for payment on construction projects, establishes a fast-track adjudication process for the resolution of payment-related disputes, and strengthens cash flow and stability industry-wide. Similar legislation exists in Ontario and Alberta, which have served as the model for this proposed system, and the move has been praised by industry groups who have long fought for these changes.
“Construction workers, contractors, and subcontractors build the infrastructure that communities rely on—schools, hospitals, roads, housing, and more,” said Bowinn Ma, Minister of Infrastructure. “By making sure they are paid promptly and fairly, we are helping projects move forward smoothly and supporting good jobs for people throughout the province.”
The legislation, once passed, will enter a transition period whereby the government can establish an adjudication authority, as well as outreach and education to ensure that everyone is on the same page when it comes to new rights and responsibilities under the new laws, which apply broadly to both private and public sector projects.
