Businesses and workers from the construction sector will benefit from greater certainty with new legislation that will ensure contractors, subcontractors and workers are paid fairly and on time.

“This legislation is about fairness. Getting paid on time shouldn’t be a struggle,” said Niki Sharma, Attorney General. “When contractors and workers are paid fairly and on time, projects stay on track and on budget, small businesses are stronger and jobs are more secure. By setting clear rules for payment and providing an efficient way to resolve disputes, we are supporting jobs and helping B.C.’s economy grow.”

Chronic delays in payments have created financial hardship for many construction businesses, especially small and medium-sized contractors, and put stress on workers and their families. The new prompt-payment legislation will:

• set clear timelines for payment on construction projects;
• establish a fast-track adjudication process to resolve payment-related disputes; and
• improve cash flow and stability across the construction industry.

The proposed system is based on models used in other Canadian jurisdictions, including Ontario and Alberta, where prompt-payment laws have delivered real benefits for businesses and workers. The new adjudication process will allow disputes to be resolved quickly by an independent adjudicator, providing an alternative to lengthy and costly court proceedings.

“Construction workers, contractors and subcontractors build the infrastructure that communities rely on – schools, hospitals, roads, housing and more,” said Bowinn Ma, Minister of Infrastructure. “By making sure they are paid promptly and fairly, we are helping projects move forward smoothly and supporting good jobs for people throughout the province.”

Industry groups in B.C. have strongly supported bringing in prompt-payment rules, and government has worked closely with the sector to ensure the approach reflects the needs of B.C. contractors, subcontractors and owners.

“We welcome this critical step toward payment certainty for B.C.’s construction industry,” said Chris Atchison, president, British Columbia Construction Association (BCCA). “It marks a new starting line that requires sustained collaboration between industry and government. Establishing fairness in how money flows means the industry can focus on building, not battling over payment. BCCA remains committed to continuing to work with the provincial government on this important issue.”

Once passed, the legislation will come into force after a transition period. This will allow time to establish an adjudication authority and to support industry through outreach and education, so businesses of all sizes understand their rights and responsibilities under the new system.

Prompt-payment rules will apply broadly to both private- and public-sector projects in B.C., including government contracts, unless specific exemptions are set out by regulation.

By improving cashflow in one of B.C.’s largest sectors, the new legislation will help support the schools, hospitals, housing and infrastructure projects people rely on. This is part of a broader plan to move B.C. forward with a stronger economy that works better for workers, families and communities.

Quotes:

Matt MacInnis, president, Electrical Contractors Association of British Columbia

“Electrical contractors are the hidden engine of our communities and economy, powering homes, schools, hospitals, industrial sites and workplaces. Yet too often, they’re forced to wait months for payment while still covering payroll and supplier costs. Prompt-payment legislation brings fairness and certainty to everyone in the construction chain and will help improve consistency across projects. This bill is about protecting workers and contractors, keeping projects moving and ensuring B.C.’s construction industry remains strong.”

Phil Venoit, provincial chair, B.C.’s International Brotherhood of Electrical Workers (IBEW)

“IBEW members power up the projects that keep this province running. For far too long, many of our contractors and tradespeople have been left waiting to get paid for the work they’ve already completed. This legislation means paycheques come on time, families have more security and workers can focus on doing the quality work B.C. depends on.”

Quick Facts:

• The construction industry is one of the largest employers in B.C.
• The ability to refer a dispute to adjudication doesn’t displace parties’ rights to litigate or arbitrate, but it provides them with an alternative that is faster and more affordable.
• The costs of adjudication will be borne by industry, making the system self-sustaining.

Learn More:

• To learn more about B.C.’s prompt-payment legislation, visit: https://www2.gov.bc.ca/gov/content/justice/about-bcs-justice-system/legislation-policy/active-reviews/prompt-payment-in-the-construction-industry

• For more information about B.C. legislation, visit: https://strongerbc.gov.bc.ca/legislation/