As a firm, we have closely followed a concerning issue for our clients: delays in payment for work on construction projects. While provinces, such as Alberta, Saskatchewan, and Ontario, have made strides in addressing this issue, British Columbia has lagged far behind.
An opinion piece by the Journal of Commerce calls the delay in BC ’embarrassing.’ Furthermore, the journal highlights that other provinces have been able to address the issue of prompt payment with little difficulty. While reforms have been implemented in some provinces, real progress has yet to be made in British Columbia.
Prompt Payment legislation is one of the top issues facing contractors today, as recently reiterated in the recently released 2023 BC Construction Industry Survey.
In today’s economic climate with rising prices of materials and labour and and high interest rates, delayed payments are a heavy burden for those trying to keep their cash flow in the positive.
Ensuring prompt payment for work performed helps contractors stay competitive and helps them provide quality services at economic prices. Legislation for prompt payment also reduces the risk of non-payment generally, and provides stability to the industry by decreasing claims that can delay projects. The lack of progress in BC on prompt payment is concerning, and we will continue to follow this issue here and in other provinces.
Check back here for future updates on this issue.
Access the full survey here: BCCA-Industry-Survey-2023-Web-Final-V1.pdf (bccassn.com)
Here is the BCCA Stat Pack Fall 2023: BCCA-VRCA-Stat-Pack-Fall-2023-Web-Final-V1
We help contractors get paid. If getting paid has become a challenge for your business, reach out to us for a free, confidential, no commitment consultation. Book here: