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The legislation is urgently needed, said ISCA executive
director Hugh Laird, citing one ISCA member as having
$7.6 million in outstanding receivables. “All of that money
is out of the lien rights period (a 45-day period following
substantial completion under the Construction Lien Act)
and most of it is 120 days late or more.”
“This kind of thing happens all the time,” he said. “A
prompt payment act would prevent it.”
ISCA is the province’s largest wall and ceiling contrac-
tors association.
ISCA joined the NTCCC – one of the key players in the
lobby to establish prompt payment legislation. Other key
associations include the OGCA and the Council of Ontario
Construction Associations (COCA).
Prompt payment legislation is not a new idea – the
U.S. federal government has such legislation in place, as
do 31 states in the private sector and 49 states plus the
federal government in the public sector, in the U.S. Over-
seas, England, Ireland, the European Union, Australia and
New Zealand have also adopted it.
In Ontario, Bill 69 builds a framework for contractor
rights to ensure all contractors, from general contractors
all the way down the subcontracting chain receive pay-
ment within 30 days.
Del Duca, who was the director of public affairs for the
Carpenters District Council of Ontario for about five years
before moving into a career in politics, says that the bill
can be passed into legislation either through the private
members bill process or the government can introduce
its own bill. “If the quickest and most efficient way of
making it reality is by way of government ... then I would
be delighted to see that as well.”
In theory the bill could be passed through a unani-
mous consent motion, but if one member of one caucus
says no, the bill would be referred back to a traditional
track for approval, the MPP says.
Del Duca points out that such legislation represents
significant “economic importance to the province.”
He says committee hearing dates are yet to be deter-
mined. “I would like to see this wrapped up before we
have an election. I don’t anticipate there will be an elec-
tion particularly soon.”
“The problem is getting worse and worse,” says Laird,
noting that many industry observers believe that instead
of paying contractors what they are owed, owners use
that money to develop other projects.
Laird says after carrying huge debts for months many
contractors, out of desperation, make deals to at least
get partial payment because to go after full payment
through litigation is expensive and time-consuming.
Jeff Koller, industry compliance officer, Ontario Con-
struction Finishing Alliance, adds that contractors fear by
making a big fuss over outstanding payment with an
owner they stand to lose out on future contracts.
“As a result in a lot of cases you find contractors mak-
ing deals for smaller portions on the dollar – maybe 60 to
70 cents – to at least walk away with something,” says
Koller. “The contractors at the bottom of the pyramid (finish-
ing trades) which are driving the economy forward and
creating the jobs are not getting paid for, in many cases,
22 – Fall 2013 — The Canadian Design and Construction Report
an exorbitant amount of time,” adds Koller.
Finishing trades such as drywall and painting contrac-
tors are the last to work on a project. If occupancy occurs
soon after they complete their work, they lose their lien
rights, says Koller.
“From the construction industry’s standpoint, Premier
(Kathleen) Wynne needs to get on side, make it a govern-
ment-sponsored bill and push it through,” he points out.
Laird fears that if the government doesn’t pass legis-
lation soon, the act will fall by the wayside.
A published report said Sandra Skivsky, director of
marketing and business development for the Canada Ma-
sonry Centre, said “we need the support and direction
from Premier (Kathleen) Wynne.”
Skivsky’s email, dated Aug. 27, said: “And to this ef-
fect we are planning a fundraiser for Premier Wynne with
a one-topic agenda – prompt payment. One of the ways
the industry can show its support for both the premier
and Bill 69 is to buy tickets and attend this event.”
Her email noted tickets would be $5,000 each with a
goal of raising $200,000,” the Toronto Sun reported.
The Sun story said Kelly Baker, a spokesman for Wynne,
referred questions about the fundraising event to the On-
tario Liberal Party.
“However, Bill 69 received unanimous support when
it passed second reading on May 16, 2013,” Baker was
quoted as saying in a statement. “The bill will be exam-
ined by a legislative committee like any other bill. The
government and the two opposition parties have already
supported Bill 69 publicly.”
“The event the premier attended will have no impact
on that matter,” Baker was quoted as saying.
Skivsky was quoted as saying there’s nothing unusual
about the construction industry holding or attending a
fundraiser. The industry has been advocating for prompt payment
legislation for six years, and the fundraiser was an oppor-
tunity to create a dialogue with politicians, she said.
“You also have to motivate people and get the atten-
tion of your own people.”
Meanwhile, NTCCC members discussed progress to-
wards prompt payment legislation at a September meet-
ing in Vancouver B.C. A published report on the coalition’s
website said NTCCC representatives met with trade con-
tractor representatives from the provincial construction
trade community to talk specifically about the prompt
payment challenge.
Richard McKeagan, representing the Mechanical Con-
tractors Association of Canada, was quoted as saying: “I
believe this meeting with the British Columbia trade con-
tractors was very informative and extremely helpful in
moving to prompt payment legislation along in B.C.
“This was only enhanced through the presence of the
British Columbia Construction Association (BCCA) presi-
dent Manley McLachlan, who noted that BCCA is ex-
tremely supportive about the prospect of B.C. prompt
payment legislation and was enthusiastic about working
with the British Columbia trade contractors organization,
now called the British Columbia Chapter of the National
Trade Contractors Coalition of Canada.”