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Prompt payment to contractors legislation moves closer to reality in Ontario

Ontario Bill 142, the Construction Lien Amendment Act, has passed second reading at Queen's Park


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October 12, 2017 by canadiancontractor

The following is a Press Release from Prompt Payment Ontario

TORONTO, Oct. 4, 2017 /CNW/ – Today, Bill 142, the Construction Lien Amendment Act, passed second reading, with a unanimous vote, at Queen’s Park and it moves to the committee stage for consideration.

Bill 142 was introduced this past spring and worked on over the summer months to ensure the bill would be at the top of the legislative agenda this fall. Representatives of Prompt Payment Ontario (PPO) expect that Bill 142 will remain a high priority over the next few months, ultimately attaining royal assent before the legislature adjourns in December. With an upcoming provincial election in the spring, staying focused and committed to making prompt payment legislation a reality in Ontario will be essential.

“We are looking for support from all parties in making sure this bill passes into law,” said Ron Johnson, a Director of PPO. “Over 400,000 workers in Ontario’s construction sector will benefit from this bill being passed and Minister Naqvi has shown he supports the sector by ensuring it moves forward quickly,” Johnson added.

Bill 142 will make significant changes to the Ontario legislative framework for construction, including changes to the Construction Lien Act, introducing new prompt payment and adjudication measures that will significantly reduce payment delays, which have been identified as the biggest barrier to investment, improved productivity, and increased employment in the construction industry.

“Trade contractors have seen instances of delayed payments and length of delays rise unabated since the 2008, abetted by the low interest environment. This legislation could not have been introduced at a better time, as higher interest rates will make delayed payment unbearable,” added Johnson. “The government is taking this issue seriously and, with the help of many concerned stakeholders, and has put together a bill that will help increase employment, increase investments in capital, training of apprentices, all while making projects more affordable to owners.”

PPO would like to thank Minister Naqvi for staying committed to this issue and ensuring that the bill was called for second reading debate promptly following the legislature’s return. We would also like to thank both Bruce Reynolds and Sharon Vogel for the incredible work they have accomplished and the Government for the open and transparent process they undertook to get us to where we are today. PPO expects the Standing Committee on Legislative Assembly to move forward promptly to discuss this important piece of legislation.

PPO cannot emphasize enough the importance of prompt payment legislation for the future of the construction industry and the hard-working, middle-class Ontarians who look to this sector to support their families.

Prompt Payment Ontario (PPO) is a sole-purpose alliance or coalition of contractor associations, unions, suppliers, general contractors, pension trust funds, and anyone else who has an interest is seeing prompt payment legislation enacted in the province of Ontario. Its purpose and goal are just that, to persuade the Ontario government that delinquent payment is a growing problem in the construction industry and that legislation is needed to ensure that money flows as it is intended down through the contractor supply chain.


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