Province seeks comments on proposed regulation for prompt payment

The Province of Manitoba is seeking feedback on a regulation to establish criteria for appointing an adjudicator under new legislation establishing prompt payment rules.

The comments can be submitted here Builders’ Liens (Prompt Payment) Regulation | EngageMB

The MHCA will also be contacting its members for input and submitting on behalf of the industry.

The amendments to the Builders’ Liens Act included rules for prompt payment between owners, contractors and subcontractors.

Prompt payment will facilitate the timely flow of construction project funds by imposing payment deadlines on each payor in the construction contract chain. Disputes under the scheme may be resolved by adjudication, the survey notes.

“This will impact owners, contractors and sub-contractors engaged in a construction project. The payment scheme is intended to improve cash-flow to contractors and subcontractors by prescribing deadlines for payment. A payor may dispute a payment. Disputes will be determined by an adjudicator who must make a determination within 30 days after receiving the documents.”

The proposed implementation date is October 21, 2024. And it is anticipated that the adjudication authority will be in place November/December of 2024.