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  • Prompt Payment legislation is coming this Fall, let's be ready.

    June 7, 2018

    Prompt Payment legislation is coming this

    Fall, let's be ready.


    On May 29th, the SCA received official confirmation from Minister Don Morgan that the Government of Saskatchewan plans to introduce Prompt Payment legislation during the upcoming Fall 2018 session of the Legislative Assembly. 
     
    This is good news for all of us who have been working for the past few years to get this legislation in place. The legislation will be introduced through an amendment to the Builders Lien Act and based on similar legislation already passed in Ontario. 
     
    While introduction of legislation is a major step in the right direction, it marks the next phase in this work, not its conclusion.
     
    Until legislation is in place, regulations are complete, and contractors have payment enforcement mechanisms available to them, the work is not complete.
     
    These next steps will be crucial - introduction of the legislation, public consultations, and debate. Those of us who support the passing of Prompt Payment legislation must be vocal and we must ensure that the arguments in favour of this legislation strongly outweigh those opposed to it.
     
    The Legislative Assembly returns on October 24, 2018. Prior to that, the SCA will be reaching out to every MLA to reference Prompt Payment and seek confirmation of their support for the legislation. While we expect both the Saskatchewan Party and the NDP to support the legislation, we don’t want to leave anything to chance.
     
    In other jurisdictions, voices in opposition to the legislation often stay in the background. We’re talking mostly here about influential developers and owners that don’t like the idea of being bound to payment terms or schedules. As an industry that values transparency and consistency, we need to ensure these quiet voices are drowned out by our own.
     
    To that end, I am asking you, our members, to reach out to your local MLA. Whether they are NDP or SaskParty, it doesn’t really matter. Call them, or send them an email or a letter. Tell them that you support prompt payment legislation and that you expect them to support it too. Tell them why you support the legislation, and what kind of an impact delayed payments have had on your business.
     
    In August, the SCA will send out a template letter you can send to your MLAs, along with all of their contact information. I would encourage you to copy the Premier, Ryan Meili the NDP Leader, and Minister Morgan, when you send your letter. Let’s make sure they know how important this really is.
     
    Once the legislation is through the legislature, a process that won’t be complete until April or May 2019, we will need to put a big emphasis on education and training. This will be particularly important a we need to train owners, consultants, lawyers, and financiers about the new rules and what they mean. It will be a big task.
     
    Thank you to everyone for your patience as we’ve worked hard to build a strong industry consensus in support of Prompt Payment and to achieve the political support we need to see the legislation through. We are close today. Closer than we ever have been before. The work isn’t done yet though. We need to keep pushing.


    Mark Cooper, MBA, PMP

    President and CEO
    Saskatchewan Construction Association

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