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Pioneering Prompt Payment Act at critical point in Ontario
National trades coalition pushes for progress
as it seeks similar laws in other provinces
Canadian Design and Construction Report staff writer
A national campaign for prompt payment legislation,
spearheaded by trade contractors, appears to have
reached a critical progress threshold (or barrier) in Ontario,
depending on whether the industry can convince the
provincial government to move a private member’s bill for-
ward on the legislative schedule.
Although Ontario’s Prompt Payment Act (Bill 69) has
received near-unanimous industry backing and has also
received multi-party support to pass second reading, lob-
byists are concerned that the initiative will not become
law until all parties commit to bringing it forward through
the committee process.
If successful, Ontario will be the first Canadian
province to introduce the legislation, though efforts are
under-way in British Columbia and elsewhere to introduce
similar laws, following models applied in the U.S. and
elsewhere internationally. The proposed legislation would
require owners to pay contractors within 30 days or notify
them in accordance with the legislation about delays. It
also enshrines the contractors’ right to suspend work if
not paid within the timelines.
Union and non-union employers, labour organizations,
sub-trades, local construction associations, and the On-
tario General Contractors’ Association (OGCA) have all ex-
pressed support for the legislation, which has passed first
and second reading, but has been referred since May to
the standing committee on regulations and private bills.
However, no hearings have yet been scheduled nor action
taken to move the legislation forward for committee re-
view, third reading and royal assent.
The National Trade Contractors Coalition of Canada
(NTCCC) initiated the legislation, reflecting similar initia-
tives in the U.S. The NTCCC is seeking similar legislation
in other provinces but, if passed, Ontario will be the first
to implement it. After some initial concerns when the
idea was initially proposed a few years ago, the draft leg-
islation has been revised and now has the support of em-
ployer and general contractor associations, as well as
organized labour.
“A number of sub trades are not getting paid on time,
unable to pay their own suppliers for materials and unable
to pay their own workers,” says Steven Del Duca, a Liberal
party member in Ontario’s provincial parliament. The On-
tario Liberals lead a minority government.
However, while both of the province’s opposition par-
ties have supported Del Duca’s bill, industry leaders wait
nervously, wondering whether it will pass into legislation
because dates for hearings on the bill have yet to be
scheduled, says a news release from the Interior Systems
Contractors Association of Ontario (ISCA).
The Canadian Design and Construction Report — Fall 2013 – 21