MATT MACINNIS
BRITISH COLUMBIA – The Electrical Contractors Association of British Columbia (ECABC) is asking BC’s political parties to commit to enacting prompt payment legislation as soon as possible, to bring payment timeline certainty and fairness to contractors and skilled tradespeople.
“The number one issue I hear from our members is not knowing when they’re going to get paid,” said ECABC President Matt MacInnis. “BC is the wild west for allowing predatory clauses in contracts that shift an unreasonable and unfair burden of risk and carrying costs on small and medium-sized trade contractors. This creates unnecessary and avoidable instability for businesses and for the skilled tradespeople British Columbia relies on to build our homes, hospitals, clean power infrastructure and community amenities.”
Prompt payment legislation has become standard across Canada and other jurisdictions. Ontario passed prompt payment legislation seven years ago, and it has been in force for approximately five years. Alberta, Saskatchewan, Manitoba, Nova Scotia and New Brunswick have subsequently passed similar legislation. Quebec provides prompt payment provision on most public sector projects, and the government of Canada recently enacted legislation that ensures payment timelines on construction projects led by the federal government.
The legislation has strong support from the construction industry. The provincial government previously received a letter signed by 31 industry and labour organizations requesting prompt payment legislation. ECABC and other industry associations, including the BC Construction Association and Mechanical Contractors Association of BC, have been advocating for BC prompt payment legislation for more than five years. The Select Standing Committee on Finance and Government Services has recommended the Government implement prompt payment legislation multiple times in its annual budget consultation report.
“The construction industry is being asked to do more than ever, faster than ever,” said Derek Fettback, Vice President of Western Pacific Enterprises and Chair of ECABC. “Enshrining payment timeline minimum standards in law will improve the construction industry and help avoid unnecessary increases in construction costs from contractors having to finance costs while waiting to be paid sometimes as much as six months.”
Ontario’s legislation, included within its Construction Act, has been used as a template by most provinces. It requires payment on the initial invoice on a project (typically between the owner and general contractor) within 28 days. All subsequent invoices throughout the project chain (such as the general contractor to the trade contractors) must be paid within seven days of the first payment. The legislation also includes an adjudication process that provides contractors with additional tools to pursue late payers that reduces legal costs and the potential burden on the court system.
BC currently has no requirements for payment timelines on construction projects, and contractors often are forced to wait months to be paid for work that has been completed and invoiced. In the meantime, they must meet payroll and supplier obligations.
For more information, visit: https://eca.bc.ca/promptpayment/ or www.eca.bc.ca.
