A program from the provincial government designed to make sure construction payments happen on time has come into effect retroactive to April 1, Public Service Delivery Minister Mintu Sandhu announced today.
According to a release from the province, the prompt payment regulation addresses concerns from the construction industry about delayed payments causing problems through project payment chains. This will avoid disruptions due to non-payments.
“Construction projects are complex and involve many parties, including owners, contractors, sub-contractors, engineers, labourers and material suppliers, and often conflicts between these parties can result in withholding funds,” said Sandhu. “These regulations make sure the local contractor at the end of the chain is protected, as they are often the one who are affected by delayed payments.”
The Minister added the construction industry includes many small and medium-sized companies who would be heavily damaged by late payments.
“The establishment of an adjudication framework and authority were important steps taken by this government,” said Sandhu. “The construction sector is vulnerable to the impact of delayed payments because of the tiered payment structure and these changes will reduce the risk of disruptions to projects while ensuring sub-contractors and suppliers can continue to pay bills and their workers.”
Adjudicators have been given powers and processes in the event of non-payments, according to the provincial government’s press release.
