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.
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.
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.
Prompt Payment Ontario
360 Superior Blvd.
L5T 2N7 Canada
Tel: 416-675-3225 ext.311