B.C. budget report formally recommends prompt payment

Key Takeaways:

• The BC 2026 Budget Committee formally recommended accelerating the implementation of Prompt Payment laws, marking a significant step toward aligning BC with other provinces and addressing chronic late payments in the construction industry.
• The report calls for increased capital infrastructure spending, expanded funding for construction-related education and training, and a review of BC’s mandatory paid sick leave policy to better support industry needs.
• Recommendations include improving public sector procurement through fairer tendering, clearer contracts, and better alignment across ministries and Crown corporations.

The Whole Story:

The BC construction industry is welcoming a formal recommendation to accelerate Prompt Payment legislation, included in the Standing Committee on Finance and Government Services’ Report on the 2026 Budget Consultation. The recommendation responds to longstanding calls from the BC Construction Association (BCCA) and industry leaders seeking improved payment timelines, workforce support, and procurement reform.

The BCCA’s president, Chris Atchison, presented to the committee earlier this year, emphasizing a set of core priorities: improving public sector procurement, increasing investment in infrastructure, and addressing workforce challenges in construction. All three areas were directly acknowledged in the committee’s final report.

The headline recommendation—formally urging government to “accelerate the implementation of Prompt Payment legislation”—was supported by multiple submissions and recognized as a critical step to improve payment certainty across the sector . BCCA praised the inclusion, noting that “payment certainty will have a real and positive impact on the industry and the hardworking women and men who make it all possible.”

In addition to Prompt Payment, the report included recommendations to:

• Increase capital infrastructure investments to drive economic growth;
• Expand funding for construction-related education and training programs;
• Review and potentially restructure BC’s five-day mandatory paid sick leave policy, which has raised concerns in some industry submissions ;
• Improve procurement practices, including fairer tendering, contract clarity, and alignment across ministries and Crown corporations .

In a statement, BCCA welcomed the report’s alignment with industry priorities and said it looks forward to continuing work with the provincial government to advance critical reforms.

“Now is a critical time for BC to build — and the construction industry has a key and leading role to play,” the association said. “The report’s reference to the industry’s priorities, areas of focus, and pressure points is an important acknowledgement of the work and initiative required by the provincial government to keep BC strong and resilient.”

The report will inform the province’s 2026 budget development, expected in early next year’s legislative session.

Ontario was the first province to pass prompt payment and adjudication rules under the Construction Act, which came into force in 2019. Since then, Alberta, Saskatchewan, and Nova Scotia have enacted similar legislation, creating statutory timelines for payment and introducing dispute resolution mechanisms to speed up conflict resolution.

Quebec has operated a pilot project for prompt payment on public projects, while Manitoba passed legislation in 2023 but has yet to bring it into force. Federally, the Prompt Payment for Construction Work Act applies to contracts with the Government of Canada, and regulations came into effect in late 2023.

In contrast, B.C. has consulted on the issue for years but has not passed legislation—making the 2026 Budget Committee’s formal recommendation a notable turning point in aligning BC with other provinces that have already moved to address chronic late payments in the construction sector.