The Mechanical Contractors Association of Canada (MCAC) is asking the Canadian Construction Association (CCA) to take a position on the Canada Prompt Payment Act (Bill S-224) currently before the House of Commons. The CCA has taken a neutral stance to this point.
“We are asking that CCA either support this bill or not. By remaining neutral, CCA, with all due respect, is ‘muddying the waters’ particularly in the eyes of the federal government,” wrote MCAC president Del Pawliuk in a letter.
He said a CCA task force on prompt payment created an action plan that “talks about ‘principles’ and ‘guides’ but, quite frankly, does nothing to fix the problem.”
He urged the CCA to “do the right thing” and support the bill.
The bill requires that federal government project owners make progress payments to a contractor on a monthly basis, or at shorter intervals provided for in a contract, and that the payment requirement is consistent down the contractual chain. The bill also accounts for milestone payments, when applicable, and permits contractors the right to suspend work, terminate a contract and collect interest on late payment.
CCA prompt payment task force chair Ray Bassett said the group is not sure that Bill S-224 will be effective and will continue to examine and discuss it in a report at the recent CCA spring board meeting in St. John’s, Nfld.