LATE PAYMENTS CONTINUE TO BE A MAJOR CONCERN FOR CONSTRUCTION INDUSTRY

April 25, 2025

Chris Atchison

BRITISH COLLUMBIA – For the past several years, the construction industry has implored the B.C. government to pay its overdue building bills on time.

Instead, the cash flow drag continues, as 91 percent of employer respondents reported being paid late at one time this past year, and 69% having not been paid at least once for work completed in the past year.

The NDP government’s failure to pass Prompt Payment Legislation means that critical construction projects carry additional financial risk, and payments are not being made for completed work.

“From tariffs and lack of prompt payment to labour shortages and faltering public sector standards on permits, contracts, and procurement, hard-working British Columbians are struggling with excessive and unnecessary uncertainty,” said Chris Atchison, President of the B.C. Construction Association (BCCA). “The provincial government must deliver on strategies and initiatives that better support construction in B.C.”

The BCCA issued a press release that noted from small to large companies to individual employees, everyone is burdened by this unnecessary uncertainty. Overwhelmingly, people working in construction reported that the lack of payment certainty keeps them up at night, followed by concerns with workforce shortages and economic turbulence.

These anxieties have sharpened since the beginning of 2025, as Canada grapples with the Trump administration’s threats and tariffs in the United States. BC construction is not immune, given 35% of the province’s international imports come from the U.S.

“At a time when supporting domestic and local industries to strengthen our province and economy is more important than ever, payment certainty is absolutely critical,” adds Atchison. “Fixing the prompt payment problem will improve cash flow for British Columbians and support contractors in managing their staff, evolving supply chains, and onerous regulatory regimes without taking on extra debt and financial expenses amidst an ongoing cost-of-living crisis. The BC Government has the tools to solve this challenge but chooses not to.”

The construction sector contributes 10 percent of the province’s annual Gross Domestic Product, and is projected to deliver $331 billion in value via major projects to B.C. over the next few years. The BCCA makes its case that with the right support from the provincial government, the industry can build the critical infrastructure, essential and affordable housing, and contribute to the overall economic resilience of British Columbia.

Construction is the No. 1 employer in BC’s goods sector, and its 10 percent GDP output is a 12 percent increase over the past five years.

Currently, 251,000 people rely directly on BC’s construction industry for a paycheque, including 191,200 in trades jobs, with the number of women in trades has risen to 10,133, a 5.3 percent increase of over 2,750 from the previous years.

There are 28,096 construction companies, which is an increase of 200 from the previous year. The average annual wage of BC construction employees is $81,555, which is 13 percent more over the past year and 38 percent over the past 5 years.

The total value of proposed construction projects in BC is $172.5 billion, an increase of 4 percent since last fall, and the estimated value of current major construction projects underway in the province is $158 billion, which while being 7 percent less since fall 2024, it is still a 41 percent increase over the past 5 years.

Multi-unit residential construction starts number 35,346, and the number of tower cranes currently erected in B.C. is 400.

Labour continues to be of some concern to the industry, as there are currently 11,555 construction jobs currently, and the number of projected construction jobs in the province that are expected to. Be unfilled due to labour shortages by 2034 is 14,100.

The BCCA is a non-partisan and non-profit organization, working with four Regional Construction Associations (Northern Region Construction Association, Southern Interior Construction Association, Vancouver Island Construction Association, and the Vancouver Region Construction Association) to serve more than 10,000 employers in the province’s industrial, commercial, institutional, and residential multi-unit construction industry.

 

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