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NTCCC backs PSPC’s cash flow transparency

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by DCN News Services

OTTAWA — The National Trade Contractors Coalition of Canada (NTCCC) is commending Public Services and Procurement Canada (PSPC) in its effort to increase efficiency and cash flow on federal construction projects by publicly disclosing payments made to prime contractors on its website so that subcontractors know when they can expect payment.
NTCCC backs PSPC’s cash flow transparency

The information will be made available for all construction contracts over $100,000 on the PSPC website.

"It is clear that the federal government recognizes the challenge of payment delays and the importance of transparency," said John Galt, chair of the NTCCC, in a statement. "They know that small businesses depend on timely payment so that they can make more competitive bids, invest in capital, hire new tradespeople and train apprentices."

The NTCCC continues to focus on passing legislation that will end payment delays from prime contractors to subcontractors, states a release.

"If payment delays were not such a systemic problem we wouldn't need this measure," said Richard McKeagan, CEO of the Mechanical Contractors Association of Canada.

The federal government pays 90 per cent of its invoices in accordance with the mandatory 30-day period. The real issues arise when prime contractors withhold payments. According to the release, NTCCC has estimated that the average collection period for subcontractors from prime contractors went from under 58 days in 2002 to 71.1 days by 2012. On May 31, the Ontario Liberals introduced amendments to the Construction Lien Act that are mirrored in Bill S-224, the Canada Prompt Payment Act, which is ready to be introduced in the House of Commons.

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