Senate Approves Prompt Payment Act

detail, Senate stained glass window

 

May 14, 2017

Canada’s Senate has unanimously passed Bill S-224, the Canada Prompt Payment Act, regulating payments on federal construction contracts. 

But as Don Wall reports in Daily Commercial News, challenges remain. The bill now goes to the House of Commons. (Shown in photo: a detail from the Senate’s Diamond Jubilee window.)

Bill S-224 requires that federal government project owners must make progress payments to a contractor on a monthly basis, or at shorter intervals provided for in a contract. The payment requirement is consistent all the way down the contractual chain. The bill also accounts for milestone payments, when applicable, and permits contractors the right to suspend work, terminate a contract and collect interest on late payment.

“It’s a great day for Canada’s construction industry. We thank the Senate for their support on this industry priority and we look forward to working with Members of Parliament on the next phase. It’s all about doing the right thing,” said Del Pawliuk, president of the Mechanical Contractors Association of Canada.

The article quotes John Galt, chair of the National Trade Contractors Coalition of Canada, who says “Trade contractors, tradespeople, suppliers, and any of the 1.2-million Canadians in the construction industry who work on federal government projects will benefit tremendously if the House of Commons also passes S-224.”

The bill was sponsored by Senator Don Plett, a former trade contractor from Manitoba. Read the full article: http://dailycommercialnews.com/en-US/Government/News/2017/5/Canada-Prompt-Payment-Act-approved-by-Senate-1023845W/.

Photo source: The Senate of Canada, www.sencanada.ca/en/about/brochure/jubilee/introduction-e.

Related Articles


Latest Articles


Changing Scene

  • BC Hydro Making it Easier and More Affordable to Connect New Homes

    BC Hydro Making it Easier and More Affordable to Connect New Homes

    July 24, 2025 BC Hydro is supporting the construction of new housing developments in growing communities by advancing changes to streamline upgrades and reducing the cost of new customer connections to BC Hydro’s electricity grid. “As communities across B.C. grow, so does the need for essential housing. We are committed to ensuring we’re ready to… Read More…

  • Mitrex Sets Record with Largest BIPV Solar Panel Mural at SunRise Residential in Edmonton

    Mitrex Sets Record with Largest BIPV Solar Panel Mural at SunRise Residential in Edmonton

    July 22, 2025 Building-Integrated Photovoltaics (BIPV) manufacturer, Mitrex proudly announces that its transformative SunRise Residential project in Edmonton, Alberta, has earned the Guinness World Record for the largest solar panel mural globally. This landmark project showcases Mitrex’s innovative BIPV solar panels, blending cutting-edge solar technology with vibrant cultural artistry to redefine sustainable architecture. Sustainable Architecture with BIPV Spanning over 30,000 square feet, the Mitrex eFacade PRO plus… Read More…

  • Nexans Unveils a Cable Made with 100% Recycled Materials

    Nexans Unveils a Cable Made with 100% Recycled Materials

    July 24, 2025 Nexans has reached a major milestone in its sustainability journey by developing a prototype cable made entirely from recycled materials — a first in the company’s history. This innovation combines technical performance, industrial feasibility, and a drastically reduced environmental footprint, marking a decisive step forward in circular economy. A cross-continental success story… Read More…

  • EFC Welcomes New Manufacturer Member: MGM Transformers

    EFC Welcomes New Manufacturer Member: MGM Transformers

    July 24, 2025 Since 1974, MGM Transformers has produced tough and trusted transformers designed to get the job done right. As a leading manufacturer, the company employs a highly experienced and dedicated engineering team that excels in custom designs. MGM Transformers is committed to excellent quality and service, offering industry-leading lead times and exceptional customer service. MGM Transformers specializes… Read More…