NTCCC pushing for prompt payment legislation at the federal level

January 19, 2018

In late 2017, the Ontario government passed Bill 142, an act designed to help ensure promptness of payment on construction projects in the province. The National Trade Contractors Coalition of Canada (NTCCC) now wants Canada to adopt similar legislation at the federal level.

NTCCC is currently made up of 10 trade organizations, which includes the Canadian Automatic Sprinkler Association, Mechanical Contractors Association of Canada, and the Contractors Division of the Heating, Refrigeration and Air Conditioning Contractors of Canada.

Senator, Donald Plett, has been urging Canada’s House of Commons to take action on his private members bill, designed to ensure prompt payments on federal construction projects. The bill was passed by the Senate of Canada on May 4, 2017. NTCCC is also engaged in ongoing discussions with federal officials to support a legislative solution to the issue of payment delays.

”We are working with the Government of Canada and the Department of Public Services and Procurement Canada (PSPC) to pass legislation that addresses concerns of all stakeholders as soon as possible” says John Galt, NTCCC council chairman. ”We have told the government that passing binding legislation in the near future is crucial because nothing else will work to solve the problem. We are very close to having this solution and look forward to legislation being debated in the House of Commons so we see improvements before the end of this government’s mandate.”

Galt is optimistic that the progress made in Ontario has provided some momentum to address the issue, and believes it will encourage the federal government to apply similar legislation for the rest of Canada.

In addition to the push for prompt payment at the federal level, other Canadian provinces are working on legislative solutions to late payments for contractors, which is expected to mirror Ontario’s Bill 142.