NTCCC Summit Paves the Way for Trade Contractor
Representatives of Canada’s trade contract communities came together in Ottawa on April 8 to discuss the urgent need for federal and provincial governments to adopt prompt payment legislation. The National Trade Contractors Coalition of Canada (NTCCC) Prompt Payment Summit allowed members to highlight progress that has been made at the provincial level and to discuss next steps for seeing these initiatives through. The summit also focused on strategies to engage other concerned stakeholders who operate regionally and at the federal level.
“The lion’s share of construction in Canada is done by trade contractors and the money is supposed to trickle down from the top,” said John Blair, NTCCC Director and Executive Director of the Canadian Masonry Contractors Association. “Trade contractors have a high dependence on cash flow and right now the money isn’t trickling down to pay people who’ve completed work even when there is no dispute about the work that’s been done.”
Trade contractors perform more than 80% of all construction work in Canada. They routinely receive late payments from general contractors, which has resulted in cash flow problems that discourage hiring, investments in capital, and in some cases even bankruptcy. This has a very real impact on the economy as fewer contractors can bid on projects, thus driving employment down and preventing apprentices from opportunities to train. The adoption of prompt payment legislation would stimulate the construction sector at no direct cost to government, while bringing Canada in line with all other comparable jurisdictions.
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