Ottawa plans prompt payment legislation
The federal government intends to introduce legislation to implement the prompt payment of contractors and sub-contractors working on federal projects. Finance Minister Bill Morneau announced the move as part of the Liberal government’s Fall Economic Statement on Wednesday.
The news was welcomed by the National Trade Contractors Coalition of Canada (NTCCC), which includes HRAI, as an important step forward in ensuring tradespeople are not left in financial trouble by having to chase payments months after completing work.
The NTCCC had urged the government to act as it says payment delays reduce cash flow, decrease efficiency and hurt small businesses and their employees.
Legislation will also include an arbitration mechanism for payment disputes.
The government stated: ”Ensuring the speed and efficiency of cash flow down the construction supply chain is fundamental to a healthy construction industry.
”The timely flow of payments within all tiers on such construction projects is necessary to enable material and equipment suppliers, sub-contractors and trades and labour to contribute with confidence to federal government projects.”