Prompt payment legislation passes second reading in Manitoba
April 25, 2023 By Anthony Capkun
April 25, 2023 – Manitoba Prompt Payment (MBPP)—a coalition of 32 trade associations and unions across the province—has reason to applaud, as Bill 38, The Builders’ Liens Amendment Act (Prompt Payment) received unanimous support and passed second reading.
“This may be the single most powerful and impactful legislation ever introduced within Manitoba’s construction sector, certainly since the creation of the Builders’ Liens Act,” said Brad Mason, MBPP co-chair.
James Teitsma, Minister of Consumer Protection and Government Services, emphasized that Bill 38 is neither a government bill nor a partisan bill: “It is a construction industry bill”.
“We heard directly from Manitoba businesses that delayed payments have caused significant problems and financial hardship—even bankruptcy—throughout the payment chain on construction projects,” Teitsma said.
Bill 38 will ensure contractors and subcontractors are paid on time for their work, services, and materials, enabling them to meet their own financial obligations and contribute to Manitoba’s economic growth, explains MBPP, adding that it would align with prompt payment rules in other provinces.
The bill introduces a number of requirements, including establishing deadlines for making payments, requiring proper invoices, and setting rules for paying subcontractors. It also creates a new adjudication process to resolve payment disputes.
Manitoba Prompt Payment exists for the sole purpose of persuading the Manitoba 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”.
For more information about MBPP, contact Ramona Coey at 204-774-2404 or firstname.lastname@example.org.
SEE ALSO One step closer to prompt payment legislation in Manitoba – Bill 38 1st reading.
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