Senate Approves Prompt Payment Act

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.