Public Services and Procurement Canada announces that the Federal Prompt Payment for Construction Work Act is now in force

OTTAWA, December 12, 2023 — The National Trade Contractors Council of Canada (NTCCC) was extremely pleased with today’s announcement from Public Services and Procurement Canada that the Federal Prompt Payment for Construction Work Act is now in effect. For more than a decade, NTCCC played a catalyzing role in bringing the matter of prompt payment to the forefront of federal discussions.

“This Act demonstrates just how important it is that contractors are paid fairly and on time,” said Ken Lancastle, NTCCC chair. “Trade contractors perform more than 85 per cent of construction work, employ the majority of the workforce, and are essential to successful delivery of projects. Fair and equitable payment provisions are critical for our members.”

“Today’s announcement is thanks in no small part to the hard work and persistence of many individuals in Canada’s trade contracting sector,” said Sandra Skivsky, immediate past chair of NTCCC. “We are pleased to see this particular chapter closed on prompt payment, and to hopefully seeing remaining jurisdictions come on board for what should be common sense. Canada’s trade contracting sector should be pleased with today’s announcement.”

At the outset of discussions on prompt payment, many industry groups expressed reservations about the need for a prompt payment legislation. Together with its constituent organizations, and several key players such as Senator Don Plett and Minister Carla Qualtrough, the NTCCC stood as the unified voice calling for prompt payment.

NTCCC member associations remain engaged and are committed to working closely with the government to ensure the effective implementation of the legislation, including its successful integration into industry practices, and the promotion of prompt payment regimes across Canada. The new law, supported by its regulatory regime, will lead to a more equitable construction industry, fostering increased confidence and collaboration among all stakeholders.