REGINA, SASK. – Prompt payment legislation is going into effect in Saskatchewan.
Provincial officials announced the laws will start to be enforced March 1, 2022.
The Saskatchewan Construction Association (SKCA), a member of the Prompt Payment Saskatchewan (PPS) coalition, celebrated the announcement and stated it clearly outlines responsibilities and processes to keep payments in the construction chain flowing in a fair, timely and transparent manner.
The enforcement date means those involved in contracts signed on or after March 1, 2022 have the legal right to expect payment within 28 days of filing a proper invoice.
The legislation also includes a speedy and binding adjudication process for any payment disputes. Contractors who are still unpaid after a favourable judgment can vacate the site and cannot be replaced. In addition, their demobilization and remobilization costs will be the responsibility of the party owing the money.
If it seems like this should have always been standard practice, PPS co-chair Ryan Tynning would agree with you: “England, Australia, and many other countries around the world have systems in place.
“This announcement means that business owners will no longer have to worry about their ability to bid on the next job, carry inventory, or train their employees because they haven’t been paid for the work they’ve already completed 90-plus days prior.”
The bill was developed by the SKCA and PPS working with the Ministry of Justice. The groups based their efforts off of Ontario’s Bill 142, passed in December 2017, with some adjustments to suit local needs.
“We’re elated beyond words to see this amendment to the Builders’ Lien Act,” said Mark Cooper, CEO of the SKCA. “Systemic late payment in the construction industry stems from the complexity of projects, the long line of consultants, contractors and suppliers waiting to be paid, and the notion that contractors cannot walk off a project for which they have not been paid – none of these are acceptable excuses to avoid paying for work completed on time and to specification.”
PPS is an industry committee which includes the General Contractors Association of Saskatchewan, the Mechanical Contractors Association of Saskatchewan, Electrical Contractors Association of Saskatchewan, Saskatchewan Masonry Institute, Canadian Institute of Steel Construction, Saskatchewan Roofing Contractors Association, Saskatchewan Association of Architects and SKCA.
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