Payment Due
SUB-CONTRACTORS NEED PROTECTION UNDER PROMPT PAYMENT LAW
By Robert Remington
Alberta contractors are making steady progress toward an ultimate goal of province-wide prompt payment legislation.
The Alberta Trade Contractors Coalition( ATCC) recently renewed a memorandum of agreement with its 10 provincial trade association members. The coalition’ s primary objective is to work with the Alberta government to create legislation for prompt payment on all public sector contracts that would enforce compliance.
“ The provincial government is showing great leadership,” said Russ Evans, executive director of the Mechanical Contractors Association of Alberta. Alberta Infrastructure has adopted a protocol of prompt payment best practices which came into effect in April 2016. They specify a maximum of 30 calendar days after the initial receipt of the application for payment, provided the contractor has properly completed their claim. Alberta Infrastructure will verify the invoice and adjust if necessary, and advise a general contractor within 14 days of the amount to be paid. The agreement has a statutory declaration saying the general contractor must confirm that they paid their subcontractors within 10 days of receipt of payment from the government, but it is not legally binding.
“ At the end of the day, once Alberta Infrastructure has paid their general contractor, there’ s nothing in place to force the general to pay his sub-contractors. The province has some rules in place that say he should, but nothing binding that says he must. That’ s what we are looking for, to build something in that will provide the sub-contractor— the guy who’ s most vulnerable— with some tools to force that payment,” Evans said.
With small business in Alberta under growing pressure because of issues such as increased minimum wage regulations and a new carbon tax, Evans said province-wide
16 2017 Edition www. smcaa. ca