< Browse more articles

HRAI and The National Trade Contractors Coalition of Canada (NTCCC) is applauding the Saskatchewan Government for moving to support contractors affected by payment delays in the construction sector.

On November 20, 2018 an amendment to the Builders’ Lien Act was brought forward that will ensure prompt payment rules are followed throughout the construction chain. Saskatchewan follows the lead of Ontario which passed amendments to The Construction Act in December 2017.

“It is great to see another Province move in a positive direction,” said Sandy MacLeod, HRAI President and CEO. “Our contractors have been at a disadvantage for too long and we’re glad to see governments are committed to leveling the playing field.”

Payment delays are one of the biggest barriers to productivity and growth in the construction sector. Bottlenecks in cash flow slow projects down and make it harder for small and medium-sized businesses in the construction sector.

“HRAI’s members will benefit greatly from any measure that makes the process of getting paid faster and easier, ensuring money flows smoothly and efficiently through the HVACR supply chain,” added MacLeod.

When payments are delayed on construction projects, trade contractors must continue to pay salaries, contribute to benefit plans, and pay taxes and suppliers. Systemic payment delays mean that there are fewer competitive bids on projects, which drive construction costs up. Many contractors have had to reduce apprentice training, cut hours, lay off workers, and some have even had to consider insolvency as a means to cope with delays.

The United Kingdom, United States, Ireland, Australia, New Zealand, The E.U. and 49-out-of-50 U.S. states have a prompt payment law in place.

For more information contact:

Scott Papp, Manager Membership & Divisional Programs

(905) 602-4700 ext. 233, spapp@hrai.ca