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