CCA established a taskforce charged with educating the federal construction contracting authorities on the importance of prompt payment and cash flow on federal construction projects, and to work with them to resolve industry concerns. A joint federal government – CCA working group was established in April. That working group continues to meet.
One of the corollary objectives of the CCA taskforce was to develop a statement of principles concerning payment. The CCA board passed the following new policy statement at its October 2016 meetings:
“CCA advocates contractual payment and related terms that are fair, reflecting the industry consensus expressed in CCDC and CCA standard documents. Further, CCA advocates that project owners, prime contractors, subcontractors, suppliers, payment certifiers and other stakeholders in the payment chain comply with all statutory/legal requirements and honour commitments and contractual obligations on time, and in the spirit of the following general principles:
- Contracting parties, both payers and payees, should be responsible for understanding all agreed contractual terms affecting obligations to make and entitlement to receive payment; and
- Project owners should share with others in a project payment chain the dates on which they make payments to prime contractors to enable parties to comply with and benefit from contract payment provisions with confidence.
While CCA supports free competitive enterprise and individual freedom (Policy Statement 1.1), CCA (National) does not object in principle to the use of effective regulation and legislation where there is broad industry consensus that this is necessary in specific circumstances to correct imbalances or preserve an efficient and productive economic and commercial environment for the benefit of the whole construction industry.”