ECABC Applauds Introduction of Prompt Payment Legislation

VICTORIA – The Electrical Contractors Association of British Columbia strongly supports the introduction of Bill 20: Construction Prompt Payment Act in the BC Legislature today.

Prompt payment legislation enshrines payment timelines for construction projects into law, and enables faster dispute resolution through the establishment of an adjudication body. Bill 20 would require payment from the project owner to the prime/general contractor within 28 days of receiving a proper invoice, and prescribes a seven day payment requirement between the prime/general contractor and sub-contractors. The timelines are consistent with legislation in other provinces.

ECABC’s contractor members have identified prompt payment legislation as the Association’s highest public policy priority. Members report often waiting 60-120 days to be paid for work they have invoiced, while still being required to make payroll every two weeks and pay suppliers monthly. The current environment creates avoidable financial pressures that contribute to increased construction costs when trade contractors are forced to build added risk and carrying costs into their bids. Unnecessarily delayed payments also constrain cash flow, limiting the growth of small businesses, and putting them at risk of bankruptcy and job losses.

“Prompt payment legislation brings fairness and improved certainty for everyone involved in construction projects, from the owner to the trades,” said Matt MacInnis, President of ECABC. “This legislation provides valuable protection for skilled tradespeople, construction professionals and contractors – particularly the small businesses who can least afford to take on the added risk of not knowing when they will get paid.”

Bill 20 follows significant industry consultation on prompt payment, including an initial review process from late 2023 to Summer 2024, and engagement with a broad cross-section of the construction industry in Summer 2025.

“Cash flow is essential for all businesses, and this is particularly important for construction companies working on multiple projects at various stages of development. Prompt payment legislation gives us more confidence that we are likely to be paid in a fair and reasonable timeline, enabling us to bid more jobs competitively and build the infrastructure and homes our communities need,” said Craig Paquin, Chair of the ECABC Board of Directors and President of Sasco Contractors Ltd.

Prompt payment legislation was first introduced in Ontario in 2017. Ontario’s Construction Act has subsequently been used as template legislation for Alberta, Saskatchewan, Manitoba, New Brunswick and Nova Scotia. BC’s Bill 20 includes strong components from other provinces while incorporating made-in-BC aspects.

“Prompt payment legislation has been successful in improving payment timelines in other provinces, and the adjudication system provides contractors with another tool to ensure they get paid for work they have done. For too long trade contractors in particular have been forced to accept onerous contract clauses that functionally force them to help finance projects. This legislation is a strong step in the right direction, and we look forward to working with the government on the accompanying regulatory regime to ensure a strong prompt payment system that’s applied across the entire construction industry,” said MacInnis.

About ECABC
The Electrical Contractors Association of British Columbia (ECABC) represents more than 150 members around the province including open shop and IBEW-signatory electrical contractors; line utility contractors; and manufacturers, distributors and suppliers.

ECABC’s members are critical to the construction of electricity generation projects, transmission infrastructure, homes, hospitals, public transit, EV charging stations and much more. In a world that is increasingly powered by renewable electricity, ECABC’s members have never been more vital to building the infrastructure B.C. families and communities need.