HomeArchitecture/planningB.C. to implement prompt-payment rules for construction industry

B.C. to implement prompt-payment rules for construction industry

Ontario Construction News staff writer

Vancouver – Contractors, subcontractors and construction workers in British Columbia could soon see faster, more reliable payments under proposed legislation that sets clear timelines and introduces a fast-track adjudication process for disputes.

Attorney General Niki Sharma called it a matter of fairness.

“Getting paid on time shouldn’t be a struggle,” she said. “When contractors and workers are paid fairly and on time, projects stay on track and on budget, small businesses are stronger and jobs are more secure.”

Industry groups said the legislation is long overdue. “For too long, delayed payments and disputes have put our industry at risk, forcing businesses to shoulder unfair financial burdens and late payments,” said Chris Atchison, president of the British Columbia Construction Association.

Matt MacInnis, president of the Electrical Contractors Association of B.C., called the reforms the “highest priority change” the government can make to support the electrical construction industry. “It’s unreasonable that contractors are often waiting several months to get paid for work that they have completed while still making payroll every two weeks and paying suppliers, typically on a monthly basis,” he said.

Legislation is expected to help projects move forward smoothly.

“Construction workers, contractors and subcontractors build the infrastructure that communities rely on — schools, hospitals, roads, housing and more,” said Infrastructure Minister Bowinn Ma. “By making sure they are paid promptly and fairly, we are supporting good jobs throughout the province.”

The prompt-payment rules will be based on similar systems in other Canadian jurisdictions, including Ontario and Alberta. The adjudication process will be industry-funded, self-sustaining, and will not replace the right to litigate. Rules will apply broadly to both public- and private-sector projects, including government contracts, unless specific exemptions are defined.

Once implemented, the legislation is expected to improve cash flow for one of B.C.’s largest employment sectors, helping keep construction projects on schedule and workers paid on time.

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