When the Canadian Construction Association’s incoming chair expressed his personal belief against pay-when-paid, some conference delegates welcomed the frank statement.
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Opposition to pay-when-paid shows 'leadership, fairness'
When the Canadian Construction Association’s incoming chair expressed his personal belief against pay-when-paid, some conference delegates welcomed the frank statement.
“I am encouraged that our new chairman has a good attitude and philosophy in not believing in pay-when- paid,” said Ross McLean, manager of Houle Electric’s Victoria branch.
Paul Charette expressed his personal opinion at CCA’s recent conference while sitting on a panel for a “worst industry practices” seminar. At the session, Charette, chairman and CEO of Bird Construction, said he personally did not believe in pay-when-paid and that he thinks it is a GC’s responsibility to vet potential clients and manage risk.
“Personally I do not believe in the pay-when-paid system,” explained Charette after the session. “When you have a pay-when-paid clause you are shifting responsibility to others.”
Grant Neal, vice-president of Vipond Inc. and chairman of the CCA’s trade contractors council, said Charette’s personal comments show leadership.
“I thought it was a milestone for the industry,” Neal said. “I think it shows the leadership and the fairness on the GC side which is needed,” said Neal.
Ian Steer of Aluma Systems and member of CCA’s manufacturers, suppliers and services council also sat on the same panel as Charette and said it was interesting to hear Charette’s opinion.
“It is an issue we are all familiar with and I said to those there, as a supplier, I have no one to share it [the risk] with, I’m carrying it,” explained Steer.
Clive Thurston, president of the Ontario General Contractors Association, said he understands why people do not believe in or like pay-when-paid, but it is a defensive mechanism available for some GCs.
“Contractors and subcontractors have to work harder to restore the trust of owners in our ability to deliver on time and on budget,” said Thurston. “Projects are a collaborative effort involving the contractor, sub contractor, owner and the prime consultant and working together is the only way to resolve this issue successfully.
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