New Law Will Help Ensure Prompt Payment for Construction Firms
/ Author: CLAC Staff
/ Categories: Local 151, Newsletters, Construction /
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New Law Will Help Ensure Prompt Payment for Construction Firms

The Saskatchewan government recently introduced legislation that would help ensure that construction businesses are paid on time.

The goal of the Building Lien Amendment Act is to create a process to establish reasonable timelines for providing payment for construction projects.

The proposed legislation would require owners and developers to pay out within 28 days of receiving an invoice for construction services.

“This is an endeavour to level the playing field between large contractors and small subcontractors,” a government news release says.

Included in this new law is an interim adjudication process for developers or owners who dispute the terms of the invoices they receive.

“There will be an arbitration process that will determine whether the bill is payable, not payable, subject to hold-backs, or whatever else,” the news release says.

The move is good news, says Mark Cooper, president of the Saskatchewan Construction Association.

“We are pleased to see the government deliver on its commitment to protect Saskatchewan construction companies—mostly small businesses—from unreasonable delays in payment that harm them, their employees, and our economy,” Cooper says.

“We agree with the government that no one should face bankruptcy because they haven’t been paid for high quality work they’ve already completed.”

Source: Construction Canada

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