TORONTO—Prompt Payment Ontario (PPO) has ceased operations and will disburse remaining funds to three charities.
PPO was created seven years ago as a coalition of construction employer associations, suppliers, labour unions and health and welfare organizations joined together to persuade the Ontario government to adopt prompt payment legislation that would improve payment timelines for construction trade contractors. PPO’s 42 members each contributed to a fund for lobby efforts, research, legal counsel, government submissions and advertising.
The organization achieved its goal in December 2017 when the former Construction Lien Act was replaced with a new Construction Act in the province which incorporated legislation requiring prompt payment for construction work for the first time in Ontario and Canada, indicates a release, adding regulations, which include an adjudication mechanism, came into effect in October 2019.
As a final action, 30 of the 42 original member organizations decided to disburse their share of the remaining funds, which totals to $106,119, among three charitable organizations: Skills Ontario; De Novo Treatment Centre for drug and alcohol addiction; and Veteran’s House in Ottawa to provide housing for homeless veterans. Each organization will receive $35,373.
“It was a long process, and it was a founding commitment that the moment Prompt Payment Ontario achieved its goal, we would disband the organization and disburse any surplus funds,” said Sandra Skivsky, director of marketing and business development for the Ontario Masonry Contractors, one of the founding members of PPO, in a statement. “We are happy to say, ‘mission accomplished’ and we believe the actions of PPO will have substantial, long-term benefits for the industry.”