Federal Prompt Payment Bill Passes Senate

prompt payment in BCBill S224, the Prompt Payment bill, passed the Senate on May 4 and is now headed for debate in the federal House of Commons.

If passed by Parliament, federal government project owners will have to make progress payments to a contractor on a monthly basis, or at shorter intervals provided for in a contract. The payment requirement is consistent down the contractual chain, notes a media statement from bill sponsor Senator Don Plett. The bill also accounts for milestone payments, when applicable, and allows contractors to suspend work, terminate a contract and collect interest on late payments.

“It’s a great day for Canada’s construction industry,” said Del Pawliuk, president of the Mechanical Contractors Association of Canada, in the Journal of Commerce. “We thank the Senate for their support on this industry priority and we look forward to working with Members of Parliament on the next phase. It’s all about doing the right thing.”


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