Industry Recommendations for Federal Legislation of Prompt Payment

Background: Industry Recommendations for Federal Legislation of Prompt Payment

On January 30, 2018, the government of Canada announced that it has retained Bruce Reynolds and Sharon Vogel of the firm Singleton Urquhart Reynolds Vogel LLP to engage with industry and provide recommendations for legislation. We have been told that a report is expected by May 1, 2018.

Following the meeting of the CCA board in Niagara Falls in early October 2017, and acting on one of the board resolutions, CCA reached out to Public Services and Procurement Canada (PSPC) in mid-October to propose that before proceeding with bill S-224 on federal prompt payment, government should retain experts to consult with industry and provide recommendations in the spirit of the process that led to a consensus and ultimately the new construction act (Bill 142) in Ontario, which was passed unanimously in December 2017. We are pleased that the government acted on this advice and we now look forward to participating in the process.

The scope of the engagement appears to be limited to regulating the timing of payments within a project and a process of adjudication to resolve payment disputes.

As it has been described to CCA, the process of engagement will be designed and administered by Reynolds & Vogel directly, and not through PSPC, CCA or other associations. Government has expressed a strong desire to have a streamlined process, building on the work already done in Ontario. Our understanding is that stakeholders will be invited to participate by Reynolds & Vogel. Unlike in Ontario, stakeholders in this process are not meant to self-identify. CCA has been invited to advise Reynolds & Vogel of stakeholders that should be included in the process.

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