Public Services and Procurement Canada (PSPC) has announced that it has started publicly disclosing payments to prime contractors so that construction subcontractors know when they can expect their own payments.
The government has a strong record of promptly paying its contractors, PSPC said in a news release. “This increase in transparency will allow companies and individuals working for those prime contractors to know when they can expect payment and to take action under their respective contracts when payments are late,” the announcement said.
As of June 8, PSPC has started publishing payment information on its website for all construction contracts of over $100,000. The same resource is available on the Defence Construction Canada website.
The Minister of Public Services and Procurement has also engaged other federal organizations and provincial governments to identify and build consensus on potential improvements to payment practices.
This work complements Government of Canada measures already in place. For example, PSPC-managed construction contracts of more than $100,000 require prime contractors to submit statutory declarations with every request for payment acknowledging that they have met all legal payment requirements. They are also required to provide contract security (such as bonds) to protect subcontractors against non-payment.
This initiative is the product of a joint government-industry working group, composed of PSPC, Defence Construction Canada and the Canadian Construction Association. The working group is also considering other measures to support timely payment in the construction industry, such as potential improvements to payment terms and contractual holdbacks.
The statement says the government continues to consult with the construction industry (for example, the Canadian Construction Association and the National Trade Contractors Coalition of Canada) to explore and put in place measures that would improve prompt payment practices in the construction industry.