Manitoba contractors cheer prompt payment legislation
April 21 2023
Manitoba construction contractors are cheering pending legislation on prompt payment in the industry.
“We’re really happy in general with this legislation and the contents of the legislation. It’s something we’ve been asking for years and years and years,” said Darryl Harrison, director of stakeholder engagement and advocacy with the Winnipeg Construction Association (WCA).
Bill 38, an amendment to the Builders’ Liens Act, which would introduce prompt payment, has received first reading.
The amendment follows what Harrison referred to as the “28, seven and seven” formula established by the introduction of prompt payment in Ontario.
This means an owner needs to pay a general contractor within 28 days of receiving an invoice, the contractor then must pay their subcontractors within seven days of receiving payment and subcontractors need to pay any of their subcontractors within seven days of receiving payment.
Harrison said the industry in Manitoba has been following how prompt payment is implemented in Saskatchewan—including how disputes are structured.
“Saskatchewan has the Saskatchewan Construction Dispute Resolution Office which seems to have broad involvement of people in the industry. So, contractors, subcontractors, I believe consultancy groups as well are involved to make sure that adjudications are done in a competent and swift manner,” Harrison told the Journal of Commerce.
The WCA is confident the Winnipeg legislation will become later in 2023.