Viewpoint: Prompt payment will reduce burden on taxpayers

On May 31, members of Prompt Payment Ontario (PPO) congratulated the Ontario Government on the introduction of prompt payment legislation in Ontario. The introduction of prompt payment legislation is a ground breaking step in the right direction and will help to protect over 400,000 workers across the province. Ontario is the first province in Canada to introduce prompt payment legislation—leading the way for other provinces across the country and the federal government to do the same.

Delinquent prompt payment has been an issue in Ontario for too long and has various negative consequences on our entire economy. Rampant delinquent payment drives up the cost of construction as contractors have to factor the risk of delinquent payments into their bids and taxpayers are increasingly burdened by the rising costs for important infrastructure projects that are a key to the province’s future economic success. Prompt payment legislation will help our economy thrive and help our ever-growing number of new infrastructure projects move-ahead in a timely and efficient manner.

“We are happy to see that the Government is doing the right thing, to solve this problem.” Ron Johnson, Director of Prompt Payment Ontario said.  “Prompt Payment Ontario, and our wide-reaching membership, are hopeful that the Government will stay true to their commitment and pass this important legislation in the Fall of 2017.”

PPO thanks Bruce Reynolds and Sharon Vogel who worked tirelessly in undertaking both the Construction Lien Act Review Report and ensuring that this legislation was truly reflective of the feedback received in stakeholder consultations. Members of PPO are looking forward to reviewing the legislation and to working with parliamentarians on implementing prompt payment legislation in Ontario as soon as possible.

PPO would like to thank their various members, who have provided ongoing support in this endeavour. Your tireless efforts have helped to raise awareness to the ongoing issues of delinquent payment in our construction sector and have assisted in a solution.