![\"Prompt](\"https:\/\/www.on-sitemag.com\/wp-content\/uploads\/2021\/03\/construction_law_gavel.jpg\")
<\/a><\/p>\n(Photo: Adobe Stock\/Zolnierek)<\/p>\n<\/div>\n
The British Columbia government has introduced a bill that, once passed, will legislate prompt payment within the province\u2019s construction industry. The British Columbia Construction Association (BCCA) says the long-awaited and critical reform follows decades of advocacy by them, as well as other industry leaders across the province.<\/p>\n
The province says chronic delays in payments have created financial hardship for many construction businesses, especially small and medium-sized contractors, and put stress on workers and their families. The new prompt-payment legislation will set clear timelines for payment on construction projects, establish a fast-track adjudication process to resolve payment-related disputes, and improve cash flow and stability across the construction industry.<\/p>\n
\u201cThis legislation is about fairness. Getting paid on time shouldn\u2019t be a struggle,\u201d said Niki Sharma, the province\u2019s attorney general. \u201cWhen 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. By setting clear rules for payment and providing an efficient way to resolve disputes, we are supporting jobs and helping B.C.\u2019s economy grow.\u201d<\/p>\n
The proposed system is based on models used in other Canadian jurisdictions, including Ontario and Alberta. The proposed adjudication process will allow disputes to be resolved quickly by an independent adjudicator, providing an alternative to lengthy and costly court proceedings.<\/p>\n
\u201cConstruction workers, contractors and subcontractors build the infrastructure that communities rely on \u2013 schools, hospitals, roads, housing and more,\u201d said Bowinn Ma, B.C.\u2019s minister of infrastructure. \u201cBy making sure they are paid promptly and fairly, we are helping projects move forward smoothly and supporting good jobs for people throughout the province.\u201d<\/p>\n
Industry groups in B.C. have strongly supported bringing in prompt-payment rules, and government has worked closely with the sector to ensure the approach reflects the needs of B.C. contractors, subcontractors and owners.<\/p>\n
\u201cWe welcome this critical step toward payment certainty for B.C.\u2019s construction industry,\u201d said Chris Atchison, president, British Columbia Construction Association (BCCA). \u201cIt marks a new starting line that requires sustained collaboration between industry and government. Establishing fairness in how money flows means the industry can focus on building, not battling over payment. BCCA remains committed to continuing to work with the provincial government on this important issue.\u201d<\/p>\n
Once passed, the legislation will come into force after a transition period. This will allow time to establish an adjudication authority and to support industry through outreach and education, so businesses of all sizes understand their rights and responsibilities under the new system.<\/p>\n
Prompt-payment rules will apply broadly to both private- and public-sector projects in B.C., including government contracts, unless specific exemptions are set out by regulation.<\/p>\n
Atchison says the introduction of the bill marks an important start, but his organization emphasizes that the work is not yet finished, stating that prompt payment legislation must be supported by clear regulations, and the establishment of an appropriate adjudication authority and strong education resources and opportunities.<\/p>\n
\u201cThis is not the finish line \u2014 it\u2019s the starting line. To build a strong, reliable system of payments and adjudication, regulations must be responsible, appropriate, with legislation applicable to all of industry, sectors, and owners. We look forward to continuing to work with the provincial government to ensure the legislation is swiftly enacted and in regular consultation with industry,\u201d he said.<\/p>\n