CCA statement on PSPC news release on federal prompt payment legislation

Public Services and Procurement Canada’s news release Government seeking recommendations on federal prompt payment legislation

Raymond Bassett, vice-president & chief underwriting officer for Travelers Insurance Company of Canada, a member of the CCA executive committee and chair of the CCA Manufacturers, Services & Suppliers Council, read the following statement at the round table event hosted by Parliamentary Secretary Steve MacKinnon:

“On behalf of the Canadian Construction Association I would like to congratulate the government of Canada on its announcement today. The timely flow of payment within all tiers on construction projects is necessary to allow material and equipment suppliers, subcontractors and trades, labour, and general contractors to succeed in their businesses – to continue providing construction capacity to build Canada’s infrastructure and to create jobs and economic opportunities in an industry that represents a very significant part of the economic activity in Canada.

CCA represents 20,000 small, medium and large construction and related enterprises through 63 integrated local and provincial construction associations throughout Canada.

Construction is a complex undertaking – there are many things that can go wrong that can slow down the flow of payments through the project. Some of these things are controllable, some less so, and some problems just come with larger complex undertakings. The government of Canada itself already sets the pace in paying its bills on time. Since April 2016 the CCA has been engaged with the Government of Canada in an initiative to improve the flow of payment. We have made some good progress on a number of tools that we hope will improve the timing of payments. Effective legislation that balances the fair interests of stakeholders and reflects a broad industry consensus is an important tool in that tool box.

The CCA and the trade and general contractor organizations here today share many member companies in common, and we look forward to engaging in the process now underway under the able guidance of Bruce Reynolds and Sharon Vogel. We look forward to contributing to this process and doing what we can to improve the flow of payment on Federal construction projects and to help contractors succeed.”

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