Steven MacKinnon, Parliamentary Secretary to the Minister of Public Services and Procurement, hosted stakeholder groups to announce the initiative at the department headquarters in Gatineau, Que.
The National Trade Contractors Coalition of Canada (NTCCC) has announced its support of the federal government’s plan to legislate prompt payment for all federal construction projects.
“Trade contractors have been encouraging the government to take action on this initiative for years,” said John Galt, chair of NTCCC. “The proposal put forward by the Parliamentary Secretary and MPs today will result in trade contractors taking on less risk on federal projects, being able to put forward more competitive bids, and tradespeople and apprentices will benefit as a result.”
In December, the Ontario government passed Bill 142, which amended the Construction and Lien Act.
“There is tremendous momentum across Canadian jurisdictions to advance prompt payment legislation,” said Galt. “Other highly industrialized countries and 49-of-50 U.S. states have some sort of prompt payment legislation on the books, so we’re very glad to be moving in that direction.”
Bill 142 aims to ensure general contractors receive timely payment, and that sub-contractors and suppliers benefit from similar prompt payment terms.
The bill was widely supported by all segments of the construction sector. The federal government intends to follow a similar framework.
“We have benefitted from the support of many champions to get to this point and want to thank Senator Don Plett and MP Judy Sgro for their tireless efforts to encourage action on this file,” said Galt. “We know that prompt payment enjoys support from all parties and we look forward to helping the politicians and regulators in finding the best possible legislative solution.”
SOURCE: NTCCC
