ECABC Applauds Federal Prompt Payment Legislation Implementation

January 7, 2024

The Electrical Contractors Association of British Columbia strongly supports newly enacted legislation that will ensure reliable payment timelines on construction projects led by the federal government.

The Government of Canada’s Federal Prompt Payment for Construction Work Act officially came into force on December 9, 2023, and mandates the government to pay contractors within 28 calendar days of receiving a proper notice. Contractors throughout the project chain will subsequently have seven days to pay their subcontractors on the project.

“Unnecessarily delayed payments are the number one concern for many construction contractors. Prompt payment legislation has been a priority for ECABC’s members for years, and it’s relieving to see it implemented on federal projects,” said ECABC President Matt MacInnis. “Payment timeline certainty is critical to ensure reliable cash flow for contractors.”

Existing construction contracts will have one year (December 9, 2024) to comply with the Act. There are now seven Canadian provinces and the federal government which have passed or implemented a form of prompt payment legislation. With the exception of Quebec, legislation is very similar across all provinces. British Columbia began an industry consultation in November 2023 to consider prompt payment legislation.

“British Columbia needs prompt payment legislation now. Our contractors and skilled tradespeople deserve the same protections widely available across Canada and the United States,” said MacInnis. “ECABC encourages the Province to leverage the proven successful legislation from other provinces, notably Ontario, and pass prompt payment legislation during the upcoming Spring 2024 session.”

The full legislation can be viewed here.

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