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Bill S-224 passes second reading in the senate

DCN News Service
Bill S-224 passes second reading in the senate

OTTAWA — Bill S-224, the Canada Prompt Payment Act, has passed second reading in the senate, a Nov. 28 release from Manitoba Senator Don Plett indicates.

The bill, initially introduced by Plett, "ensures that the government institution must make progress payments to a contractor on a monthly basis, or at shorter intervals provided for in the respective contract. This payment requirement is consistent down the contractual chain."

The proposed legislation only covers contracts and the sub-contracts of those contracts with the federal government, the release makes clear — all other construction projects fall under the purview of the respective provinces and territories.

The bill also accounts for milestone payments and stated contractors have the right to suspend work, terminate a contract and collect interest on late payment.

Plett said in the release that this development "is an important step towards securing promptness in payment for trade contractors in Canada.

"However, it is my sincere hope that the bill will pass through committee and third reading debates quickly, so that we can move it forward to the House of Commons," his statement reads.

The progress of the bill was previously applauded by the National Trade Contractors Coalition of Canada (NTCCC).

"This is a tremendous opportunity for Canada to join virtually every other country in the Western world that has some form of prompt payment legislation in place to address this worldwide problem," said John Galt, chairman of the NTCCC, in a previous article.

The bill reached second reading on April 19, after first reading took place April 13.

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