BC Prompt Payment Legislation Progressing
April 28, 2025
Consistent with its mandate of growing the economy, the government wants to ensure that businesses are paid promptly for work performed on (or material provided to) construction projects. British Columbia’s Ministry of Attorney General staff have been tracking the issue of payment delay in the construction industry, including legislative responses in other jurisdictions.
Evidence from other jurisdictions – particularly Ontario – suggests that legislation is working, and so the Attorney General has recently directed Ministry staff to prepare a legislative proposal for further consideration by government. Consistent with the model seen elsewhere, and particularly important in the current fiscal climate, the costs of any dispute resolution mechanisms proposed in legislation would need to be borne by the construction industry, and not by government.
Ministry staff conducted a large table consultation with interested parties in the construction industry through summer and fall of 2024. As a result of this input, the Ministry now has a good sense of what prompt payment legislation could look like for BC. That input will inform the legislative proposal now under development.
“ECABC is encouraged the provincial government is taking a meaningful step forward towards prompt payment legislation, which our members have long advocated as their highest priority from the BC government,” commented Electrical Contractors Association of British Columbia (ECABC) President, Matt MacInnis in a statement.
“Prompt payment legislation provides payment certainty for everyone on a construction project. ECABC believes that the skilled tradespeople, construction professionals and contractors we rely on to build our homes, hospitals, schools and community infrastructure deserve the same protections available in other provinces, and should be paid in a fair and reasonable timeline for their work. Onerous and predatory contract clauses like ‘pay when paid’ or payments that takes months put unfair risk onto trade contractors and result in unnecessary increases in the cost of construction projects.
“This is important legislation that ECABC hopes government will now prioritize. We would like to see it passed by the Legislature this fall.”
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