Prompt payment rules needed in updated Builders’ Liens Act: MHCA, industry

Manitoba should follow suit of other provinces and adopt a sweeping revision of the Builders’ Liens Act to bring in comprehensive and workable prompt payment rules, in line with jurisdictions across Canada.

That was the message delivered to consultations held this week by the Labour, Consumer Protection and Government Services Department, by a coalition of construction industry associations, including MHCA.

At the July 12 consultation, co-chaired by Michael Werier, there was consensus around the table that the Manitoba government should embrace and follow the recommendations of the Manitoba Law Reform Commission Report.

“We expect the summary report to government to reflect that evident sentiment, recommend that approach with utmost haste and encourage government to act on and effect the clear consensus,” MHCA President Chris Lorenc said. 

The province is looking at a variety of vehicles to enact prompt payment rules to ensure timely flow of payment to all contractors, engineering consultants and suppliers involved in large construction projects, along with an adjudication system to deal with disputes.

Manitoba’s Law Reform Commission in 2018 published a paper recommending the modernization of the Builders’ Liens Act. The recommendations are in line with the steps taken in other provinces – notably Ontario and Saskatchewan – to update protections and rules governing the contractual agreements and obligations of all parties to a construction project.

 “We support the LRC’s recommendations as they are comprehensive, clear and reflect best practices in use elsewhere,” Lorenc said. Lorenc participated virtually in the consultation session July 12. Other representatives of industry associations appeared in person.

Manitoba ought to be in step with the legislative provisions and process of other provinces because construction companies are mobile and it is in everyone’s interest to have uniform approaches across Canada.

“We are among the last remaining jurisdictions without prompt payment legislation,” Lorenc noted, adding that other provinces similarly undertook updating rules through the Builders’ Liens Act. “There’s no advantage to Manitoba being an island unto itself and there’s clear advantages in aligning with other jurisdictions.”