July 17, 2023 By Anthony Capkun
July 17, 2023 – In New Brunswick, the Construction Prompt Payment and Adjudication Act (a.k.a. Bill 42) received Royal Assent. Congratulations!
“Delayed payments create significant cash flow struggles for contractors. This legislation will help make sure payments flow in an orderly, expected, and timely system,” said Andrew Myers, president, Construction Association of New Brunswick (CANB).
CANB explains that contractors in the province have been financing the projects they’ve been building for far too long, adding that “CANB believes that Prompt Payment is a winning formula for every part of an ethical construction industry.”
“Cash flow is king in our industry, and we’ve long advocated for this legislation since it’s not unusual to have to wait 120 days or more for payment,” Myers continued. “Getting those timelines reduced will allow our members to reinvest in their companies, grow our industry, and grow New Brunswick.”
Bill 42 will guarantee payment to general contractors within 28 days of an invoice being issued, and subcontractors within seven (7) days. Once in force, the legislation will bring New Brunswick in line with other provinces throughout Canada, including Ontario, Saskatchewan, and Alberta, adds CANB.
“We would like to thank all members of the provincial legislature who helped deliver on a commitment that the industry has been working toward for years. There is still a lot of work to do in finalizing the prompt payment and adjudication regime, and we remain committed to ensuring all construction contracts issued in the province are required to adhere to the legislation,” said Myers.
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