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Canada’s Trade Contractors Support Saskatchewan Government Commitment to Prompt Payment

NOVEMBER 21, 2018—TORONTO The National Trade Contractors Coalition of Canada (NTCCC) is applauding the Saskatchewan Government for moving to support contractors affected by payment delays in the construction sector. Yesterday, an amendment to the Builders’ Lien Act was brought forward that will ensure prompt payment rules are followed throughout the construction chain. Saskatchewan follows the lead of Ontario which passed amendments to The Construction Act in December 2017.

“This move shows that Canada is moving in the right direction,” said Sandra Skivsky, Chair of NTCCC. “Our contractors have been at a disadvantage for too long and we’re glad to see governments are committed to leveling the playing field.”
Payment delays are one of the biggest barriers to productivity and growth in the construction sector. Bottlenecks in cash flow slow projects down and make it harder for small and medium-sized businesses in the construction sector.

“Trade contractors do over 80% of the work in the construction sector,” added Skivsky. “Our members will benefit greatly from any measure that makes the process of getting paid faster and easier, and their employees will reap the benefits too.”

When payments are delayed on construction projects, trade contractors must continue to pay salaries, contribute to benefit plans, and pay taxes and suppliers. Systemic payment delays mean that there are fewer competitive bids on projects, which drive construction costs up. Many contractors have had to reduce apprentice training, cut hours, lay off workers, and some have even had to consider insolvency as a means to cope with delays.

The United Kingdom, United States, Ireland, Australia, New Zealand, The E.U. and 49-out-of-50 U.S. states have a prompt payment law in place.
“Canada is playing catch up and we are glad to see such important developments at the provincial level,” concluded Skivsky.

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The National Trade Contractors Coalition of Canada (NTCCC) was established in 2004 to provide an organized forum for Canada’s national trade organizations to share information, resources, and to collaborate on issues that are of common interest all. The membership is currently comprised of: Canadian Roofing Contractors Association, Canadian Automatic Sprinkler Association, Canadian Masonry Contractors Association, Canadian Electrical Contractors Association, Mechanical Contractors Association of Canada, Interior Systems Contractors Association, Thermal Insulation Association of Canada, Heating Refrigeration and Air-Conditioning Institute of Canada-Contractors Division, Sheet-Metal Contractors Association, and the Canadian Institute of Steel Construction.

For more information please contact:
Rob LeForte
Public Affairs
rob@impactcanada.com
613-233-8906