The Canadian Institute of Steel Construction (CISC) applauds the recent federal budget announcement, which further solidifies the Canadian government’s commitment to the implementation of federal prompt payment legislation and adjudicative measures. The CISC strongly supports the Canadian government’s action against the systemic issue of delayed payments in the construction industry.
According to the CISC, the implementation of federal prompt payment legislation will provide a structured process that ensures all payments flow down the construction supply chain promptly. Additionally, an added adjudication process will act as a mechanism to reinforce that payments be made on time. This legislation will reduce risk in business and provide a secure playing field for trade contractors who perform 80% of the work in Canada’s construction sector. Under a prompt payment system, they will be able to better plan for the future and bid on more projects.
“The Canadian steel construction industry fully supports the 2019 budget that includes prompt payment legislation for Canadian Federal construction projects,” says Ed Whalen, President & CEO of the CISC. “Prompt Payment legislation is the single most important Bill for the security of families employed in construction. It will protect jobs, strengthen small businesses, stimulate training, and improve productivity. Hats off to the government for listening to the true builders of the middle class.”
In close partnership with the National Trade Contractors Coalition of Canada (NTCCC) over the last decade, the CISC has been a leading organization in advocating the need for prompt payment legislation. Delayed payments have been one of the biggest challenges in the Canadian construction industry due to the negative impacts that recurring cash-flow problems have had on the construction supply chain, trades people, Canadian families, and the overall construction economy.
In a statement from the CISC, “The federal government is the single largest construction-owner in Canada, and they have now set the tone that prompt payment should be an industry standard. We applaud their ongoing efforts in bringing federal prompt payment legislation to Canadians and acknowledge their unwavering support of this initiative. With this action being a federal priority, we look forward to seeing provincial governments adopt prompt payment legislation of their own.”