On-Site Magazine

Canadian Steel construction industry applauds Senate passage of Bill S-224, the Canada Prompt Payment Act

By CNW Group   

Construction Construction Materials prompt payment steel

MARKHAM, ON – The Canadian Institute of Steel Construction (CISC) applauds and thanks all Senators for their leadership in passing Bill S-224 after third reading in the Senate on May 4.

“The passage of Bill S-224 in the Senate marks a significant milestone in our efforts to push for legislation that mandates timely payments for our businesses and for the over 1.3 million construction industry workers in our industry,” said Ed Whalen, president of the Canadian Institute of Steel Construction (CISC).

“We are proud of the impact and leadership that the CISC and its Members and Associates have had in championing Bill S-224”, added Whalen.

a) THE ISSUE: Delayed payments are reaching 90 days past due and severely impacting the construction industry

  • Delayed payment is one of the biggest issues impacting the Canadian construction industry, taking billions out of the economy, and putting thousands of middle class families at risk of job losses and bankruptcies.
  • According to industry data, $46 billion in payments remained unpaid past a 30-day period which represents about 16 per cent of the estimated $285 billion in annual construction activity in Canada .


  • Canadian subcontractors and construction trades, who perform 80% of the work and employ 80 per cent of the people (1.3 million), are being severely impacted by slow payment with mounting job losses, increased input costs and bid prices, reduced competition at home and significant erosion of their global competitiveness.
  • Payment delays impact the entire construction supply chain with reduced investments in skills development, innovation and lean manufacturing, and result in much lower productivity and increased project costs.
  • When payments are tied up, there is a dramatic reduction in investments in green technologies that reduce our carbon footprint and increase energy efficiencies, and deep cuts to training and apprenticeship programs for our future workforce.

c) THE SOLUTION: Bill S-224, The Canada Prompt Payment Act

  • Bill S224 will free up millions of dollars, provide companies with working capital, secure existing jobs, create new jobs, stimulate investment and get the construction industry back on its feet.
  • Bill S224 will reduce government costs benefiting all Canadians while making our construction industry more competitive.

Today we are one step closer to securing the long-term future of our industry and the livelihood of millions of middle class Canadians that depend on us.

We urge the House of Commons to strongly consider the devastating impacts of delayed payments on our industry and on the middle class families that we support, and for the benefit of all Canadians, pass Bill S-224 with overwhelming support.



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