WINNIPEG — The Mechanical Contractors Association of Manitoba (MCAM) is celebrating news that after 13 years of advocacy prompt payment is now in effect for the province.
It became effective April 1, the association states, and applies to all projects with a prime contract signed on or after this date.
“I credit both the current and previous governments for listening to and understanding industry needs,” said Ramona Coey, MCAM executive director, in a statement.
“The MCAM Board of Directors dedicated the necessary resources to make prompt payment a reality.”
Key updates to the Manitoba Builders’ Liens Act (BLA) and its accompanying regulations define the prompt payment process:
- Owners must pay contractors within 28 days.
- Contractors must pay subcontractors within seven days.
- An adjudication authority has been established to resolve disputes with further details forthcoming.
- The holdback period has been extended to 60 days for all contracts, regardless of when they were entered.
“Timely adjudication of payment disputes is essential,” adds Brad Mason of SERVCO, who was co-chair of the now-dissolved Manitoba Prompt Payment Coalition.
“Many contractors have gone out of business waiting months-or even years-for contract resolutions, often receiving only cents on the dollar. The implementation of a prompt payment regime is a much-needed safeguard for our industry.”
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