SOURCE: Electrical Business Magazine
Will BC’s prompt payment struggle see any movement? by Anthony Capkun, December 3, 2021
You would think something like getting paid in a timely manner for the work you did is a no-brainer.
You would think.
Unfortunately, this has not been the case across Canada’s construction sector and, naturally, frustration has been building to epic levels.
“Our members definitely want legislation to be put in place as soon as possible,” says Deborah Cahill, president, Electrical Contractors Association of British Columbia. “For every day that we delay, our members are having to spend precious time and resources to chase down payments for work that they’ve already done. And that has a significant effect on our members.”
“They’re perhaps not able to finance the next job, or they’re unable to hire new staff,” Cahill continues. “It limits their ability to expand their businesses and support their communities, because they’re having to finance their own jobs. They’ve done the job, they’ve paid their employees, they’ve bought the supplies… yet they haven’t been paid.”
This delay in payment, Cahill tells me, can go anywhere from 30, 60, 90, 100+ days.
In fact, promptness of payment is already identified in construction contracts, Cahill notes, “yet, it seems to not be working”.
While there’s always the Builders’ Lien Act for seeking payment remedies, she points out it usually “comes out at the end of a job, when things have gone completely sideways, and it’s holding up payment for everyone”.
“Prompt payment legislation is more proactive; it gets in front of the problem, hopefully preventing things from going sideways,” Cahill notes.
“So when you take a look at the compound effect of that on any individual or company-no matter whether it’s large or small or medium-that limits them. I’m pretty comfortable in saying that our members just want this legislation to go through as fast as possible,” she affirms.