Prompt payment legislation consultations on-track
The first of two provincial consultations for drawing up prompt payment legislation was productive and there was largely agreement among the industry representatives, MHCA President Chris Lorenc says.
The first consultation session, which is examining the prompt payment amendments required to the Builders’ Lien Act (BLA), began on November 28. That meeting reviewed various issues and the positions of all stakeholders, along with a recap of the progress to date made by the provincial government in assessing the status quo across Canada, particularly with provinces that have adopted comprehensive prompt payment legislation.
“Richard Wilson, an MHCA Board member and our representative to that meeting, noted that the gathering was collaborative and Michael Werier, the facilitator, was open to suggestions for clarification and refinement of the items most in need to ensure all parties to a construction contract understand their obligations and enjoy protection for prompt payment,” Lorenc said.
Included in the discussion were obligations around invoicing, payment (including progress payment), when the timeline for payments is interrupted by adjudication.
“I understand that there was broad agreement among the representatives that the process toward prompt payment needs to be as simple as possible in order to avoid potential loopholes and confusion down the road,” Lorenc said. There is also unanimous agreement that the BLA be amended to ensure there is no right to contract out of the legislated protection for prompt payment and that the payment obligations oblige the government and Crown.
There is also consensus that while amendments to the BLA will mirror the advice of the Manitoba Law Reform Commission and be guided by the Ontario model, that key will be to learn of any challenges within the Ontario legislation to ensure mistakes are not repeated.
A second working group to meet on December 13, at which MHCA President Chris Lorenc will participate, will focus on the adjudication structure and process to be embedded in an amended BLA. .
The intent is to do amend the BLA with the priority issues for prompt payment, and then at a later date address a fuller scope of necessary legislation, in an overhaul of that Act.
