Legislation was introduced in the Saskatchewan Legislature on Tuesday regarding construction businesses being paid on time.
The Building Lien Amendment Act, according to a release from the province, will “create a payment process to establish reasonable timelines for providing payment for construction projects.”
The proposed legislation would require owners and developers to pay out within 28 days of receiving an invoice for construction services.
“This is an endeavour to level the playing field between large contractors and small subcontractors.”
Included in this new law is an interim adjudication process, which will be used should developers or owners believe the invoice to be inaccurate.
“There will be an arbitration process that will determine whether the bill is payable, not payable, subject to hold-backs, whatever else.”
The move has been well received by Mark Cooper, the President of the Saskatchewan Construction Association.
“We are pleased to see the government deliver on it’s commitment to protect Saskatchewan construction companies -mostly small businesses- from unreasonable delays in payment that harm them, their employees and our economy. While we still need to review the entire Bill introduced today (Tuesday), we agree with the government that no one should ever face bankruptcy because they haven’t been paid for high quality work they’ve already completed.”