Manitoba introduces prompt payment for construction

WINNIPEG — The Government of Manitoba is making changes to ensure the construction industry gets paid.

The province has introduced amendments to the Builders’ Liens Act that will make prompt payment the law of the land.

“The window for major construction is often limited by seasonal challenges, so greater efficiency in project renumeration is important to the flow of work performed and to project owners, contractors and Manitoba workers,” said Consumer Protection and Government Services Minister James Tietsma in a news release.

The legislation will ensure timely construction projects by removing the disruptions caused by non-payment in the supply chain, reduce costs due to bidders adding contingency amounts due to the risk of late payment, help ensure subcontractors and suppliers can pay bills and workers, and establish a judicial framework to resolve prompt payment disputes.

The government notes late payment is not unique to construction but that the sector is particularly vulnerable to its negative effects due to the tiered payment structure.

“At each tier of the contract chain, contractors and subcontractors must finance payrolls, materials and other expenses in advance of being paid,” reads the release.

“Delayed payments at multiple tiers can compound severe financial consequences for subcontractors.”