Pass Prompt Payment Legislation
The time for payment certainty in BC is now.
From schools to housing to hospitals, BC depends on its construction industry to get the job done. Now, it’s time to get Prompt Payment done.
The Attorney General has directed the Ministry to begin preparing Prompt Payment legislation.
BC’s construction industry welcomes this update! This is great news for our industry, for the development of BC’s critical infrastructure, and for the hardworking men and women responsible for bringing projects to reality.
But the work doesn’t stop here.
Hard-working British Columbians deserve payment certainty.
Payment certainty legislation is already in place in most provinces. BC’s failure to implement this critical policy weakens our ability to compete nationally and attract and retain the investment and workforce our province needs to keep growing.
The provincial government needs to know that this is a priority.
“If we focus strictly on prompt payment and adjudication, we will get most of it right, but there still is an element of lien reform that is being recommended strongly by us, in and around the provisions of holdback release and the timing of holdback release.”
– Chris Atchison, BCCA President, as quoted in this recent article.
Lack of payment certainty is one of the most significant issues in the construction sector. When contractors don’t get paid on time, it places a financial burden on businesses and blocks cash flow in the economy. The additional annual cost to taxpayers is estimated to be in the billions.
Solving the prompt payment challenge in BC will improve cash flow for hard-working British Columbians across our province. It will help our contractors pay their staff and bills and manage their business without taking on extra debt and financial expenses amidst a cost-of-living crisis. It will also help projects proceed on a more predictable and reliable timeline, building certainty and confidence in our construction industry and province.
Good for business, good for you
Passing Prompt Payment means:
- The construction industry remains capable of delivering the housing and infrastructure essential for British Columbians.
- Cash flows down the construction pyramid: everyone gets paid on time, including those at the bottom of the pyramid who have historically been most impacted.
- The impact of paid when paid and paid if paid clauses is mitigated, addressing inequalities of bargaining power among parties while preserving their freedom of contract.
- Consistency and certainty for applicable timelines, payment obligations, and enforcement mechanisms across all sectors of the construction industry.
Where do we go from here?
Step 1:
Policy Development (We are here!)
Step 2:
Draft the Bill
Step 3:
Introduction and First Reading
Step 4:
Second Reading
Step 5:
Committee Stage
Step 6:
Report Stage
Step 7:
Third Reading
Step 8:
Royal Assent
Step 9:
Enactment
The reality is, Prompt Payment will take some time to get implemented, from drafting the Act’s regulations to the transition timelines and process.
Always make sure to read your contracts thoroughly and review our resources for more information: bccassn.com/project-delivery/read-your-contract/
Check back here for more updates and to see the progress of Prompt Payment in BC!
How can I show my support?
Prompt payment is a top priority for our industry — it needs to be done, and it needs to be done right.
The British Columbia Construction Association (BCCA), our valued regional partners, and allied stakeholders and champions across the industry are committed to working with the provincial government to ensure the legislation is appropriate and adequate.
You can show your support by sending a letter to the provincial government outlining industry expectations and what needs to be possible for the legislation to succeed. We’ve made it easy — here’s a pre-drafted letter that’s ready to go whenever you are.
All you need to do is input your name, postal code, and email, and a letter will be automatically sent to the MLA in your riding.