New rules for prompt payment have come into effect in Manitoba, setting expectation on how payments are to flow or related disputes are to be addressed.
The MHCA, as part of a broad group of industry associations, has championed the introduction of prompt payment legislation. This legislation is part of an ongoing process to further modernize the Builders’ Liens Act.
This legislation, as of April 1, requires those who purchase construction services to pay promptly for provided services, whether in progress or final. It’s coupled with an adjudication process to support compliance and resolve disputes.
MTI and Manitoba Hydro are not included in this legislation, as that would require updates to the Builders’ Liens Act, which is ongoing. However, the provincial government has committed to seeing MTI and Manitoba Hydro comply with the legislated provisions.
What this means for our members:
- Projects with Prime contracts signed on April 1, 2025, or later are subject to the prompt payment system
- Project owners must pay contractors within 28 days of receiving a proper invoice
- Contractors must pay sub-contractors within seven days of being paid
- The holdback period is now extended to 60 days for all contracts, including those signed before April 1, 2025
- At industry request, the Province has established a Manitoba Prompt Payment Adjudication Authority (MMPA) to address disputes.
- A Board of Directors has been appointed; an interim Executive Director has been hired
- A funding agreement to operationalize adjudication has been entered into
- Two adjudicators have been trained, certified, and named
- Keep an eye on this space for more information about its operational date in the coming weeks
Read a copy of The Builders’ Liens Act from the Province here and a copy of the Builders’ Liens (Prompt Payment) Regulations here.
“This is a big day for the construction industry in Manitoba,” MHCA President & CEO Chris Lorenc said. “There remains work to do but having the rules in place sets the bar, from which we can work.”
The MHCA, at a March 27 meeting with MTI Minister Lisa Naylor, emphasized the need for prompt payments for progress and final payments.
MHCA, with Thompson Dorfman Sweatman, will hosting a legal seminar on what prompt payment rules mean on May 2. Click here for details.
