The British Columbia Construction Association (BCCA) welcomes the provincial government’s introduction of prompt payment legislation, a long-awaited and critical reform necessary for the construction industry.
This legislation follows decades of advocacy by the BCCA and industry leaders across the province.
“This legislation is a long-overdue and critical first step toward securing payment certainty and is a positive development for all of B.C.’s construction industry. It will help owners by reducing payment disputes that can stall or disrupt projects, keep work moving as planned and ensure our collective focus remains on building, not battling over payment,” said Chris Atchison, president of the BCCA.
Chronic delays in payments have created financial hardship for many construction businesses, especially small and medium-sized contractors, and put stress on workers and their families. The new prompt-payment legislation will:
- set clear timelines for payment on construction projects;
- establish a fast-track adjudication process to resolve payment-related disputes; and
- improve cash flow and stability across the construction industry.
The proposed system is based on models used in other Canadian jurisdictions, including Ontario and Alberta, where prompt-payment laws have delivered real benefits for businesses and workers. The new adjudication process will allow disputes to be resolved quickly by an independent adjudicator, providing an alternative to lengthy and costly court proceedings.
“Construction workers, contractors and subcontractors build the infrastructure that communities rely on – schools, hospitals, roads, housing and more,” said Minister of Infrastructure Bowinn Ma. “By making sure they are paid promptly and fairly, we are helping projects move forward smoothly and supporting good jobs for people throughout the province.”
Once passed, the legislation will come into force after a transition period. This will allow time to establish an adjudication authority and to support industry through outreach and education, so businesses of all sizes understand their rights and responsibilities under the new system.
Prompt-payment rules will apply broadly to both private- and public-sector projects in B.C., including government contracts, unless specific exemptions are set out by regulation.
“This is not the finish line — it’s the starting line. To build a strong, reliable system of payments and adjudication, regulations must be responsible, appropriate, with legislation applicable to all of industry, sectors, and owners. We look forward to continuing to work with the provincial government to ensure the legislation is swiftly enacted and in regular consultation with industry,” added Atchison.
