Posting of contract payments will help subcontractors get timely payouts
The Government of Canada is committed to growing the economy, strengthening the middle class and helping those working hard to join it. Our government understands that too many workers in the construction industry face financial hardship because of payment delays.
One June 8, Public Services and Procurement Canada (PSPC) announced that it will publicly disclose payments to prime contractors so that construction subcontractors know when they can expect payment.
The government has a strong record of promptly paying its contractors. This increase in transparency will allow companies and individuals working for those prime contractors to know when they can expect payment and to take action under their respective contracts when payments are late.
As of today, PSPC will begin publishing payment information on its website for all construction contracts over $100,000.
The Minister of Public Services and Procurement has also engaged other federal organizations and provincial governments to identify and build consensus on potential improvements to payment practices.
This work complements Government of Canada measures already in place. For example, PSPC-managed construction contracts of over $100,000 require prime contractors to submit statutory declarations with every request for payment acknowledging that they have met all legal payment requirements. They are also required to provide contract security (such as bonds) to protect subcontractors against non-payment.
This initiative is the product of a joint government-industry working group, composed of PSPC, Defence Construction Canada and the Canadian Construction Association. The working group is also considering other measures to support timely payment in the construction industry, such as potential improvements to payment terms and contractual holdbacks.
"Late payment can no longer be an acceptable option,” said the Honourable Judy Sgro, chair of the Standing Committee on Transport, Infrastructure and Communities. “Contractors who complete their obligations have to be paid appropriately in a timely manner. We will continue to take steps to find successful resolutions that all hard‑working Canadians would expect."