The Electrical Contractors Association of British Columbia (ECABC) is calling for B.C.’s political parties to commit to enacting prompt payment legislation as soon as possible, to bring payment timeline certainty and fairness to contractors and skilled tradespeople.
Prompt payment legislation has become standard across Canada and other jurisdictions. But B.C. currently has no requirements for payment timelines on construction projects, and contractors often are forced to wait months to be paid for work that has been completed and invoiced. In the meantime, they must meet payroll and supplier obligations.
“The number one issue I hear from our members is not knowing when they’re going to get paid,” said ECABC president Matt MacInnis. “B.C. is the wild west for allowing predatory clauses in contracts that shift an unreasonable and unfair burden of risk and carrying costs on small and medium-sized trade contractors. This creates unnecessary and avoidable instability for businesses and for the skilled tradespeople British Columbia relies on to build our homes, hospitals, clean power infrastructure and community amenities.”
Ontario passed prompt payment legislation seven years ago, and it has been in force for approximately five years. Alberta, Saskatchewan, Manitoba, Nova Scotia and New Brunswick have subsequently passed similar legislation. Quebec provides prompt payment provision on most public sector projects, and the government of Canada recently enacted legislation that ensures payment timelines on construction projects led by the federal government.
The legislation has strong support from the construction industry. The provincial government previously received a letter signed by 31 industry and labour organizations requesting prompt payment legislation. ECABC and other industry associations, including the B.C. Construction Association and Mechanical Contractors Association of B.C., have been advocating for B.C. prompt payment legislation for more than five years.
“The construction industry is being asked to do more than ever, faster than ever,” said Derek Fettback, vice president of Western Pacific Enterprises and chair of ECABC. “Enshrining payment timeline minimum standards in law will improve the construction industry and help avoid unnecessary increases in construction costs from contractors having to finance costs while waiting to be paid sometimes as much as six months.”
The Select Standing Committee on Finance and Government Services has recommended the government implement prompt payment legislation multiple times in its annual budget consultation report.
