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Prompt payment organization continues to grow

May 26, 2105 – Thirty-four construction employers’ associations, benefit pension plan administrators, and unions were represented yesterday at a meeting of Prompt Payment Ontario (PPO) in Vaughan, making it the most well-attended meeting yet of the new organization.

Attendees were asked on a sign-in sheet to indicate how many employers and employees their associations represented. Those numbers totaled 14,714 employers and 181,350 employees. At least eight other employer associations and unions were unable to attend yesterday’s meeting due to scheduling conflicts. During the meeting a list of 40 different organizations who have each paid the membership fees of $10,000 was presented, as well as financial statements.

PPO president Eryl Roberts said he was very pleased with the turnout and added that it is an indication of how pressing and important the issue of delinquent payment is in the construction industry.

“Prompt Payment Ontario is growing every day,” said Roberts. “The attendance at yesterday’s meeting is a testament to the importance of this issue for a majority of the construction industry.”

Prompt Payment Ontario formed out of efforts to pass into law Vaughan MPP and now-Transportation Minister Steven Del Duca’s Private Member’s Bill 69 last year. The proposed legislation would have enforced payment within 30 days for completed construction work or given contractors the right to stop work for non-payment.

“Our members are being arbitrarily forced to extend a line of credit worth hundreds of millions of dollars to finance construction projects,” said Roberts.

It has become common practice for many developers and general contractors not to pay trade contractors for 3 to 4 months after work has been certified as being complete.

The provincial government halted consideration of Bill 69 last year in favour of launching an independent review of the Construction Lien Act, chaired by noted construction lawyer Bruce Reynolds. Roberts said PPO is participating in the review and is cautiously optimistic that Reynolds understands the problem and has a broad enough mandate to properly address it, although in its current form the Construction Lien Act is designed to address an issue completely different than that of delinquent payment.

For more information
http://ontariopromptpayment.com