b'INDUSTRY UPDATEITS TIME FOR PROMPT PAYMENT BRYAN WALLNERLEGISLATION IN B.C.Chief Executive Officer, RCABCO nMay28,2019,B.C.LiberalHousedelayedpayments.Thesedelaysdisrupttheir Leader Mary Polak introduced Bill M223,cash flow, hinder their ability to meet financial also known as the Prompt Payment (Buildersobligations and impede their capacity to take on Lien) Act.new projects. While B.C. construction companies continuePromptpaymentlegislationisneededto to wait for government action on this importantcreateafairandtransparentpaymentprocess topic,Ontario,NovaScotia,Albertaandwithintheconstructionindustry.Legislation Saskatchewan have all passed provincial legisla- wouldestablishcleartimelinesforpaymentat tion to require payment within 30 days. Today,each stage of a project, ensuring that subcontrac-B.C. contractors wait on average 50-75 days totorsincluding RCABC members and suppliers be paid.receive compensation promptly. To help resolve The construction industry is the backbone ofdisputes, a key part of any legislation is a formal BritishColumbiaseconomythroughemploy- adjudicationprocesstoresolveclaimsquickly. ment and infrastructure development. However,This has been a key success factor in Ontario and prompt paymentor, more specifically, the lackneeds to be in B.C. as well.ofpromptpaymentforservicesisanissueTheGovernmentofBritishColumbiahas thatraisescostsandthreatensnewdevelop- signalledtheimportanceofpromptpayment ment.Subcontractorsandsuppliersoftenfacelegislation. Drawing from the success stories in challenges in receiving timely payments for theirOntario and other provinces, British Columbia work, leading to cash flow problems and projecthasbegunaprocesstocapturebestpractices delays. British Columbia needs prompt paymentin anticipation of crafting its own B.C. legisla-legislation tailored to the construction sector. tion. RCABC has joined BCCA as part of the consultation alongside all interested construction In the absence of regulation, payment delaysassociations, including ECABC and MCABC, to have become commonplace in the constructionreview and identify the best aspects of all existing industry. Bad actors may withhold payment forlegislation in Canada.variousreasons,includingdisputes,paperworkPromptpaymentlegislationisnotjust issues or simply to manage their own cash flow.amatteroffinancialfairness;itisacritical Thispracticecreatesarippleeffect,causingdriverofefficiency,productivityandgrowth financial strain throughout the supply chain. withintheconstructionindustry.InBritish Subcontractorsandsuppliers,oftensmallColumbia, the introduction of this legislation is to medium-sized businesses, bear the brunt oflong overdue.8 lROOFINGBClSPRING 2024'