Prompt Payment legislation coming to the Nova Scotia construction industry.
Halifax, NS – (05/01/2019) The Construction Association of Nova Scotia (CANS) and the Nova Scotia Prompt Payment Coalition are pleased with the Province of Nova Scotia’s decision to amend the existing Builders’ Lien Act to include prompt payment legislation.
“The existing law in Nova Scotia is costly, cumbersome, and inaccessible to many small and medium-sized family-owned companies,” says Duncan Williams, President and CEO of CANS. “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.”
“Our province needs a prompt payment solution that works for everyone including employers, contractors, buyers of construction and consumers,” says Tim Houtsma, board member of the Canadian Institute of Steel Construction. “While this serious problem is being felt now in our industry, there is a risk to Nova Scotia’s competitiveness long-term if we do not take action to fix the issue.”
Over the past several years CANS has conducted membership surveys to solicit feedback on prompt payment. In 2018 most members indicated that delayed payments were occurring on almost all of their jobs, which increased the cost of doing businesses. If proper legal framework was in place to combat delinquent payments, their organizations would be in a better position to purchase equipment, increase the use of apprentices and hire more people.
On Thursday, April 11, Bill 119 passed its third reading at the Nova Scotian legislature. The bill will carry the new name of Builders’ Lien and Prompt Payment Act, and will establish a system of requirements to ensure timely payment in the construction industry. Stakeholder consultations are expected to take place over the summer.
Duncan Williams says “The Act will set out minimum payment requirements and will have a systematic approach to how money will be released with rights and responsibilities set forth for all parties to a construction project.”
Our coalition believes that these changes will improve the movement of money in our economy, increase fairness and transparency, efficiency and productivity, and lower the overall cost of construction projects.
For more information about prompt payment and the Nova Scotia Prompt Payment Coalition, visit: www.nspromptpayment.ca
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For more information, contact:
Colin MacDonald
Manager, Marketing & Communications
Construction Association of Nova Scotia
Cell: 902-818-0835 Email: cmacdonald@cans.ns.ca