British Columbia is introducing new legislation that will require prompt payment in the construction industry, a move aimed at reducing financial strain on contractors, subcontractors and workers.
Attorney General Niki Sharma said the legislation will set clear payment timelines and create a faster adjudication process to resolve disputes. “This legislation is about fairness. Getting paid on time shouldn’t be a struggle,” Sharma said in a statement.
Timelines and dispute resolution
Under the rules, contractors and subcontractors will be entitled to payment within defined periods. The law will also establish an independent adjudication system to resolve disputes quickly, providing an alternative to lengthy court processes.
The provincial government said the system is based on models in Ontario and Alberta, where prompt-payment laws have improved cash flow and reduced conflict on projects.
Industry response
Industry groups have welcomed the change. Chris Atchison, president of the British Columbia Construction Association, called the legislation a “critical step toward payment certainty,” noting it will allow companies to focus on building rather than “battling over payment.”
Electrical contractors and labour representatives also voiced support. Matt MacInnis, president of the Electrical Contractors Association of B.C., said too many firms have been forced to wait months for payment while covering payroll and supplier costs. Phil Venoit, provincial chair of the International Brotherhood of Electrical Workers, said the new rules will mean “paycheques come on time” and families will have more security.
Scope of the law
Prompt-payment requirements will apply to both private- and public-sector construction projects, including government contracts, unless exemptions are set out in regulation. The legislation will come into force after a transition period to allow for industry education and the creation of an adjudication authority.
The government said the new framework will support stability in one of B.C.’s largest industries and help ensure projects such as schools, hospitals, housing and roads move ahead without unnecessary delays.
