Prompt Payment Ontario

Join us in fighting for Prompt Payment Legislation in Construction!

Prompt Payment Ontario (PPO) is a sole-purpose alliance or coalition of contractor associations, unions, suppliers, general contractors, pension trust funds, and anyone else who has an interest is seeing prompt payment legislation enacted in the province of Ontario. Its purpose and goal are just that, to persuade the Ontario government that delinquent payment is a growing problem in the construction industry and that legislation is need to ensure that money flows as it is intended down through the contractor supply chain.

Why Prompt Payment legislation is needed

The Problem

Construction is a primary driver of the economy, providing for the employment of more than 434,000 Ontarians (6.4% of Ontario’s workforce). Yet delinquent payment in construction is rampant and a growing problem. Trade contractors are commonly made to wait for periods of four months or longer to get paid for work that has been certified as being complete.

This represents an unfair transfer of financial risk from owner/developers (those who stand to profit the most from a construction project) to trade contractors (those who can least afford it yet create jobs, employ workers, and drive the economy).

Ontario and Canada lag behind a majority of other jurisdictions who already have prompt payment legislation in place – 49 US states have it for public sector projects, 31 US states have it in place for the private sector, the US federal government has had prompt payment legislation in place since 1982, the European Union, United Kingdom, Ireland, New Zealand, and Australia all have prompt payment legislation.

Existing law in Ontario, the Construction Lien Act (CLA), is costly, cumbersome, and inaccessible to 80% of the construction industry (small and medium-sized family-owned companies consisting of 20 or fewer employees) – it addresses non-payment as opposed to delinquent payment and the lien rights of many in the industry will expire long before they realize they will not get paid.

Economic Consequences

  • Delinquent payment drives up the cost of construction as contractors have to factor the risk of delinquent payment into their bids.
  • Delinquent payment strains cash flow, especially for small businesses that still have to meet payroll, pay bills, taxes, WSIB premiums and other costs to the point of forcing some businesses into insolvency.
  • Delinquent payment stymies new job creation and restricts investment in apprenticeship training (the construction industry accounts for roughly 40% of all apprenticeships) as trade contractors must limit their payroll commitments to meet cash flow expectations.
  • Late payment practices erode the level playing field as those who maintain honourable practices are put at a disadvantage.

The Solution

  • Legislation that requires payment for construction work certified as being complete within 30 days of that certification.
  • Allow for monthly progress payments on projects of longer duration.
  • Allow for interest and penalties to accumulate where payment within 30 days is not forthcoming.
  • Allow for contractors to suspend work where payment is not forthcoming for unreasonable periods.

Statement by PC MPP Monte McNaughton

Monte McNaughton, PC MPP for Lambton – Kent – Middlesex, and PC leadership candidate, delivered the following Member’s Statement in the Ontario Legislature renewing calls to the government to enact and pass prompt payment legislation.

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News Page

    • Acoustical Association Ontario
    • Architectural Glass and Metal Contractors Association
    • Association of Millwrighting Contractors of Ontario
    • Brick & Allied Craft Union
    • Canadian Automatic Sprinkler Association
    • Canadian Concrete Masonry Producers Association
    • Canadian Institute of Steel Construction - Ontario Region
    • Carpenters District Council of Ontario
    • Concrete Forming Association of Ontario
    • Council of Ontario Construction Associations
    • Crane Rental Association of Ontario
    • Electrical Construction Association of Hamilton
    • Electrical Contractors Association of Ontario
    • Electrical Contractors Association – Quinte-St. Lawrence
    • Greater Toronto Electrical Contractors Association
    • I.B.E.W. Construction Council Of Ontario
    • I.B.E.W. Local 353 Welfare Plan c/o Toronto Electrical Industry Benefit Administration Services Limited
    • Independent Plumbing & Heating Contractors Association
    • Independent Unionized Landscape Contractors Association
    • Interior Systems Contractors Association of Ontario
    • International Brotherhood of Boilermakers
    • International Union of Operating Engineers, Local 793
    • Labourers' International Union of North America
    • Masonry Contractors' Association of Toronto
    • Mechanical Contractors Association of Ontario
    • Ontario Association of Demolition Contractors
    • Ontario Concrete & Drain Contractors Association
    • Ontario Council of Painters/International Union of Painters and Allied Trades
    • Ontario Erectors Association
    • Ontario Glass & Metal Association
    • Ontario Ironworkers District Council of Ontario
    • Ontario Masonry Contractors Association
    • Ontario Sheet Metal Contractors Association
    • Residential Siding Contractors Association of Greater Toronto
    • Residential Carpentry Contactors Association Of Greater Toronto
    • Residential Tile Contractors Association
    • Ontario Formwork Association
    • Ontario Painting Contractors Association
    • The Residential Low Rise Forming Contractors Association of Metro Toronto and Vicinity
    • Toronto & District - Carpentry Contractors Association
    • Trim Association of Ontario

    Get in Touch Electronically

    Please fill in the form below to submit your inquiry via e-mail.

    Corporate Address

    Prompt Payment Ontario
    360 Superior Blvd.
    Mississauga, ON
    L5T 2N7 Canada

    Tel: 905-564-6622
    Fax: 905-564-5744

    Eryl Roberts

    PPO President

    Tel: 416-675-3225 ext.311
    Fax: 416-675-7736

    List of Directors

    Eryl Roberts, President

    Hugh Laird, Vice President

    John Blair, Secretary Treasurer

    Steven Coleman

    Joe De Caria

    Cosmo Mannella