b'PROVINCIAL REGULATIONSPROMPTPAYMENTREGULATIONS ARE HERE!ONTARIO AMENDMENTS TOOK EFFECT OCTOBER 1. IS YOUR BUSINESS READY?By Warren HeeleyTHE CONSTRUCTION INDUSTRYlenders, increased scrutiny on spending,and certification rules? Are all your changed on October 1, 2019.and simply trying to meet the newdepartments (A/P, A/R, procurement, The long-awaited changes to thepayment requirements will need to beetc.) aware of the new prompt payment Construction Act and regulations tied toaddressed. rules? Are your accounting systems set prompt payment and adjudication cameup to deal with changes such as issuing into effect on that date. These changesThe previous approval and paymentnotices of non-payment and paying assist in making sure that workerssystem of waiting 90-plus days forundisputed portions of invoices? Will you and businesses get paid on time forcontractors to get paid was just notpay trades out of your own pocket if you their work and payment disputes areworking in the interests of the companiesdont get paid? Will you start adjudication addressed quickly. doing the work. The new system willagainst an owner or general contractor?undoubtedly have its challenges. This is a very good regulation forHowever, contractors now have legalThe new regulations contain a rigid the construction industry. It ensuresrequirements in place to ensure they getset of rules for prompt payment that our members will get paid in a timelypaid in a specific timeframe after invoicesapply to both public and private sector manner, says TCA president Johnare issued. projects of all sizes and to all parties in Mollenhauer. Obviously our industry isthe construction sector. Prompt payment affected by a great deal of legislation onSo, is your business ready for thisis now mandatory for all construction an ongoing basis. However, we have notchange? These new constructioncontracts through monthly progress seen an overwhelming regulation suchregulations are intended to improvepayments unless the parties agree to as this for some time.the flow of funds from the owners toa different payment schedule in the contractors and to subcontractors.contract. Mollenhauer says that in the earlyHowever there are a number of other stages, the new regulations will be aquestions construction companies mustADJUDICATIONsteep learning curve for constructionsort out within their companies aboutThe regulations include a new companies. Things such as expeditingthe new rules: Have your contracts beenadjudication process for resolving payments, dealing with pressure fromupdated to the new payment timingpayment disputes without having to go to 18Quarter 3 2019 BUILDERSDIGEST'