Some comments from Prompt Payment BC survey respondents:
Payment delays are the most significant bottleneck in B.C.’s construction industry. These bottlenecks push risk down the construction chain which leads to fewer competitive bids on projects, higher costs, layoffs, and in the worst cases bankruptcy. Timely cash flow throughout the construction payment chain is fundamental to a healthy construction industry. Over 80% of work in the construction sector is completed by trade contractors and their employees. Their success and the health of their businesses is vital to the health of the sector as a whole and to the economy of British Columbia.
Our province needs a prompt payment solution that works for everyone including tradespeople, contractors, government, and taxpayers. The current situation sees delayed payments trickle down the chain creating both hardship and a serious reduction in efficiency in the construction industry. It also increases the cost to finance company operations and drives up the cost of construction overall. Between 2007 and 2012 the average duration of a receivable in Canada’s construction industry increased from 62.8 days to 71.1 days—an increase of over 13%. The impact of payment delay on small- and medium-sized enterprises can be disproportionately severe, and even a minor delay in payment of one or two invoices can put smaller businesses under severe financial stress.
Prompt Payment B.C. is dedicated to ensuring our province’s construction laws are fair for everyone in the industry. Prompt Payment legislation would keep more projects on-time and on-budget as we invest in infrastructure and build exceptional communities.
Join us, donate, and most importantly have your voice heard by sending a message to your elected MLA letting them know it is time to take action!