New Legislation Benefiting Saskatchewan Construction Workers | The Canadian News

The Government of Saskatchewan has announced the implementation date of long-awaited prompt payment legislation.

It was designed to ensure that construction companies doing satisfactory work are paid for that work in a timely manner.

“So today, the way things work is that construction companies often go months without getting paid for work that they have actually completed,” said Mark Cooper, executive director of the Saskatchewan Construction Association.

The legislation on timely payments will put an end to that by enforcing the payment to a company within 28 days of the presentation of the corresponding invoice.

If they are not paid within 28 days, the company would be entitled to an adjudication process or the ability to leave the job if deemed necessary.

However, the 28-day period is causing some concern, particularly in the Saskatchewan Association of Urban Municipalities.

His representatives, like the vice president of cities, Gerald Aalbers, are worried that it is a too closed window.

“I think all the contractors know that if you work for a municipality they will pay you, again it can take 45 days or 30 days. But by forcing the 28 days, it only adds a huge challenge.

A challenge, which Aalbers believes will draw money out of taxpayers’ pockets, as municipalities often have to hire outside contractors to complete major capital and infrastructure projects.

“If the work is not complete or there are deficiencies, once the contractor is paid and moves out of town, how are those deficiencies going to be resolved? That could put additional pressure on our home cities to seek legal action to get that contractor back. We want to make sure that hard-earned money from taxpayers is applied in the best possible way, ”Aalbers said.

Cooper is in favor of the new rules, having seen firsthand the struggles construction workers have been through.

“I have received calls from business owners crying because they are fully leveraged on their lines of credit, they have mortgaged their houses and they are trying to figure out how to keep their employees working and they are just not getting paid. And that level of frustration, anxiety and anguish has been a real problem for these companies, ”Cooper said.

The Saskatchewan Association of Urban Municipalities has lobbied the government to waive the legislation, something Cooper disagrees with.

“Everyone has to pay their bills, and there is no reason, big or small, why you should get a waiver of paying your bills in a timely manner. And it’s just not true that entities can’t process payments or resolve disputes within a reasonable time that exists around the world, ”Cooper said.

The legislation goes into effect on March 1, 2022.