1. Transparency - PSPC and DCC are developing a tool
to post on a public website the dates on which they
issue payments to their prime contractors on construc-
tion contracts above $100,000.

2. Statement of Principles – following adoption by
the CCA board in spring 2016 of the policy statement
on payment (Policy 4.15 Payment cca-acc.com/cca/pol-
icy-statements), PSPC and DCC have adopted princi-
ples advocating for a prompt payment culture in
government and within industry participants. These
principles will be included in future construction ten-
ders. 3. Fair Pay ment Terms – PSPC and DCC have re-
viewed their standard contracts for consistency and
alignment with CCDC standard documents.

4. Government Servic e Standards – PSPC is review-
ing internal processes to identify any opportunities for
improvement affecting the timing of payment.

5. Education – The working group will be developing
education content around contract terms, service stan-
dards, frequent bottlenecks, remedies for delayed pay-
ment, and payment best practices on federal
construction contracts. Training could be structured
with local construction associations for joint delivery
with government on how to do business with PSPC
and DCC.

The Government of Canada currently invests in construc-
tion both directly through construction contracts, and
through Real Property Services Management contracts,
often referred to as “RP-n” contracts (e.g. RP-1 and RP-2).

Initiatives by the working group will not apply to the existing
RP-1 or RP-2 contracts. The working group will initially focus
on initiatives to improve timely payment throughout the
contract tiers on government’s direct construction con-
tracts (contracts administered through PSPC and DCC with
values over $100,000). The working group scope includes
consideration of applying identified initiatives on future RP-
n procurements.

In addition to the priorities above, the working group is
considering several other initiatives including, for example,
a review of holdback requirements, a review of the dispute
resolution process, and a simple method for benchmarking
industry experience over time on promptness of payment
and evaluating the impact of the various measures put in
place by the working group.

www.threadsoflife.ca The Canadian Design and Construction Report — June 2017 – 9