Many in the construction industry are applauding new legislation to ensure contractors, subcontractors and workers are paid fairly, and on time.

“This legislation is about fairness. Getting paid on time shouldn’t be a struggle,” said Niki Sharma, Attorney General.

“When contractors and workers are paid fairly and on time, projects stay on track and on budget, small businesses are stronger, and jobs are more secure. By setting clear rules for payment and providing an efficient way to resolve disputes, we are supporting jobs and helping B.C.’s economy grow.”

The Province says chronic delays in payments have created financial hardship for many businesses, especially small and medium-sized contractors, and put stress on workers and their families.

The new ‘prompt payment’ legislation will set clear timelines for payment on construction projects and establish a fast-track adjudication process to resolve payment-related disputes. It’s also meant to improve cash flow and stability across the construction industry.

The proposed system is based on models used in other Canadian jurisdictions, including Alberta and Ontario.

The president of the BC Construction Association, Chris Atchison, calls it a critical step toward payment certainty for the industry, marking a new starting line that requires sustained collaboration between industry and government.

“Establishing fairness in how money flows means the industry can focus on building, not battling over payment. BCCA remains committed to continuing to work with the provincial government on this important issue.”

Once passed, the legislation will come into force after a transition period, which will allow time to establish an adjudication authority and to support the industry through outreach and education, so businesses of all sizes understand their rights and responsibilities under the new system.

Prompt payment rules will apply broadly to both private- and public sector projects in B.C., including government contracts, unless specific exemptions are set out by regulation.

To learn more, visit Government of British Columbia.