Prompt payment ontario
CREATING A PROMPT PAYMENT REGIME IN ONTARIO
Impact began working with Prompt Payment Ontario (PPO) in 2016 to help the group get through to Government regarding the most serious issue facing Ontario’s construction sector – delinquent payments. Delinquent payments drive up the cost of construction, constrict cash flow to small businesses, hinder job creation, affect worker payroll, and reduce apprenticeships. Currently, the average delay for a trade contractor to get paid for work that has been completed is 61.3 days and 1 in 5 trade contractors wait for payment on work completed for more than 90 days.
Impact developed a strategy to help PPO cut through the clutter at Queen’s Park and developed a multi-partisan approach that turned PPO’s message into action. PPO was reaching a standstill and were beginning to think that it would require a change in government to see the enactment of prompt payment legislation. We were able to develop a multi-partisan and collaborative strategy that helped influence change.
PPO’S ADVOCACY CAMPAIGN REQUIRED MULTI-PRONGED APPROACH
- Direct advocacy
- Media relations
- Grassroots engagement
- MPP education
- Stakeholder outreach
- Events at Queen’s Park
RESULTS: THE BIGGEST CHANGE TO ONTARIO CONSTRUCTION LAWS IN OVER 34 YEARS!
Ontario was the first province to pass prompt payment legislation across the country - Ontario is now a national leader in the implementation of prompt payment legislation and has set the stage for improvements in the broader Canadian construction sector.
Under new legislation, the owner of a construction project is required to pay the general contractor within 28 days of receiving the invoice, and the subcontractor must receive payment from the general contractor within 7 days of receiving payment from the owner. Further, the bill will add adjudication process to resolve payment disputes faster.
This is a victory for more than 400,000 contractors and tradespeople in Ontario and will help to resolve payment delays which have been the largest barrier to the industry’s growth.
Prompt Payment Ontario was recognized in the legislature by all parties for the hard work they have done to forward this important cause.