The Time is Now to Champion Prompt Payment for Our Industry
Timely cash flow throughout the construction payment chain is fundamental to a healthy construction industry. Delay in payment anywhere in the supply chain reduces profit, restricts innovation and investment in plant, machinery and people. It also increases the cost to finance company operations and drives up the cost of construction overall. Jurisdictions across Canada are working to improve payment terms and practices at all levels of the supply chain.
Prompt Payment in BC
“We are now at the stage where the BC Construction Industry must act together and quickly” states Dana Taylor of the Mechanical Contractors Association of BC (MCABC). The Vancouver Regional Construction Association (VRCA) and the Council of Construction Trade Associations (COCTA) is inviting stakeholders to meet about Moving Forward with Strategies for Prompt Payment in BC. The meetings take place at the VRCA Training Room on March 6th and 7th, 2018 from 3:00-5:00 pm.
Note: The March 6th session is SOLD OUT. Seating for March 7th is limited and participants are asked to RSVP at their earliest convenience.
Topics for discussion:
- The consequences of delayed payment for satisfactorily completed work.
- The legislative solution: What is prompt payment legislation and why is it needed?
- Next steps: How do we get prompt payment legislation in BC?
Canadian Prompt Payment Initiatives
Federally, other provinces have passed legislation and are introducing prompt payment rules on public and private projects. Bill S-224 has passed in the senate and industry groups are being consulted to provide recommendations to ensure prompt payment on government purchased construction. Ontario’s Bill 142 has significantly amended the Construction Lien Act. Prompt payment measures are also underway in New Brunswick, Saskatchewan and Alberta.
It’s Time to Strategize for Prompt Payment BC
Delayed compensation throughout the construction payment chain increases risk and chokes economic growth. The impact of payment delays on small and medium-sized enterprises can be disproportionately severe, and even a minor delay in payment of one or two invoices can put smaller businesses under severe financial stress. It’s time to come together, share knowledge, gain support and take action.