Ontario contractors call for caution on Prompt Payment Act

The Ontario General Contractors Association (OCGA) is now calling for the government to put the brakes on its Proposed Bill 69-2013, the Prompt Payment Act.

Last week CCE reported that school boards and municipalities were upset with the legislation (click here), It is intended to ensure that construction contractors and subcontractors don’t have to wait too long for payment, but would impose some unworkable requirements. For example, as drafted, the legislation only provides a short review period of 20 days for the consultant and the owner to review an application for a progress payment.

Now the OCGA is also urging the province to take more time to work out the details of the Act. The Bill has passed second reading and is heading for committee hearings on March 19. The contractors point out, for example, that the bill does not address alternative project delivery methods such as P3s, EPCs and design-build.

OGCA President Clive Thurston writes in a press release on March 3: “OGCA supports the vision that general contractors, trade contractors, suppliers and workers should be paid in a timely manner for the work they do,” says “We worked with the National Trade Contractors Coalition of Canada (NTCCC) to develop a framework which would follow with a collaborative process.”

But, Thurston says, “It was the intention and common understanding that there were a number of important issues involving other stakeholders that needed to be addressed before the legislation could be passed,” Thurston adds. “Pushing this through in its current form will prevent any detailed input from industry stakeholders and effectively shut down the consultation process.”

He continues: “We are concerned the legislation, as written, will only get it partly right. It will result in more problems than it will solve,” Thurston notes. “We must take the time required to address all legitimate issues to make sure that payments in the construction industry are made in a timely manner.”

To see the OCGA press release, click here.