B.C. begins preparing for prompt payment legislation

Key Takeaways:

• The Attorney General of British Columbia has directed her Ministry to prepare Prompt Payment legislation, signaling a major step forward in ensuring timely payments in the construction sector.
• The BC Construction Association (BCCA) is advocating strongly for the legislation, emphasizing its importance for industry stability, workforce retention, and economic growth.
• According to a BCCA survey, 91% of B.C. construction employers experienced late payments in the past year, with 69% not being paid at all at least once.

The Whole Story:

The province of B.C. just got one step close ensuring timely payment in the construction sector.

The BC Construction Association (BCCA) announced that Attorney General Niki Sharma has directed her Ministry to prepare Prompt Payment legislation. The announcement comes in the midst of the eighth annual Construction and Skilled Trades Month and follows BCCA’s annual Day at the Legislature in Victoria.

The group stated that payment certainty will have profoundly positive impacts on the industry, economy, and lives of hard-working British Columbians. BCCA urged the provincial government to prioritize the development and implementation of this critical legislation and commit to collaborating with the construction industry as partners in this important work.

“We’re pleased to see the BC government take steps toward ensuring payment certainty for the construction industry,” said Chris Atchison, President of the BCCA. “This legislation is absolutely crucial to support, attract, and retain the investment and workforce our province and economy need to keep growing, and keep growing strong.”

The group noted that provincial government’s delay in passing Prompt Payment Legislation has had significant and devastating consequences for BC’s construction industry and infrastructure development. They argued that by taking swift action now, legislators can show their support for this critical sector, improve cash flow for British Columbians across the province, strengthen the economy, and ensure that BC remains competitive on national and global stages.

“Prompt Payment legislation must be informed by the perspectives and needs of those impacted — the construction industry must always have a seat at the table,” emphasized Atchison. “From homes to hospitals, BC depends on its construction industry to get the job done. Now, let’s get this done for the industry.”

BCCA is committed to working with the provincial government to advance the timely implementation of this critical legislation and stand strong for BC’s construction industry. The time for payment certainty in BC is now.  For more information, check out promptpayment.ca.

According to the latest BCCA survey, 91% of construction employers in B.C. reported being paid late for completed work in the past year, and 69% reported not being paid at least once during the same period.

Here’s a breakdown of prompt payment legislation in other provinces:

Ontario

Ontario led the way with the introduction of its Prompt Payment and Adjudication provisions under Bill 142, the Construction Act (effective October 1, 2019). Key features include:

• Mandatory timelines for payment (28 days for owners to pay contractors, 7 days for contractors to pay subcontractors).
• An adjudication process for resolving payment disputes quickly.

Saskatchewan

Saskatchewan implemented Prompt Payment legislation under The Builders’ Lien (Prompt Payment) Amendment Act, effective March 1, 2022. It includes:

• Payment deadlines similar to Ontario’s model (28 days for owners, 7 days for downstream payments).
• Statutory adjudication for dispute resolution.

Alberta

Alberta enacted Prompt Payment legislation through Bill 37, the Builders’ Lien (Prompt Payment) Amendment Act, effective August 29, 2022. Key provisions include:

• 28-day payment deadlines.
• Mandatory adjudication for payment disputes.

Manitoba

Manitoba’s Prompt Payments in the Construction Industry Act came into force on February 1, 2024. It mirrors legislation in other provinces by:

• Establishing timelines for payment.
• Creating an adjudication process for disputes.

Nova Scotia

Nova Scotia introduced Prompt Payment legislation through Bill 37 in 2019, with the regulations fully implemented by December 2024. It incorporates:

• Deadlines for payments within the construction pyramid.
• Adjudication processes.

Quebec

Quebec has proposed Prompt Payment laws and is piloting adjudication processes, although full implementation is still in development as of 2025.