April 6, 2017

Canadian steel construction industry calls on Ottawa for prompt payment legislation

MARKHAM--A national delegation of members and associates from the Canadian Institute of Steel Construction (CISC), the voice of the Canadian steel construction sector, met with parliamentarians from all political parties during CISC's "Steel Construction Day on the Hill" in Ottawa on April 4, to urge for immediate adoption of prompt payment legislation to address the severe problems impacting the construction trades and the entire construction supply chain.

They claim delayed payments have put small and large businesses employing over 1.3 million tradespeople at risk, eliminating middle class jobs, eroding competitiveness, increasing project costs and costing significant taxpayer dollars. The construction industry is one of the largest employers of the middle class. Payment delays are putting their businesses, workers and families in jeopardy, they say.

The CISC is calling for support for BILL S-224, the Canada Prompt Payment Act.

a) Issue: Delayed payments are reaching 90 days past due and severely impacting the construction industry

Delayed payment is one of the biggest issues impacting the Canadian construction industry, taking billions out of the economy, and putting working middle class families at risk of job losses and bankruptcies. According to industry data, $46 billion in payments remained unpaid past a 30-day period which represents about 16% of the estimated $285 billion in annual construction activity in Canada.

b) Impacts:

Canadian subcontractors and construction trades, who perform 80% of the work and employ 80% of the people (1.3 million), are being severely impacted by slow payment with mounting job losses, increased input costs and bid prices, reduced competition at home and significant erosion of their global competitiveness. Payment delays impact the entire construction supply chain with reduced investments in skills development, innovation and lean manufacturing, and result in much lower productivity and increased project costs. When payments are tied up, there is a dramatic reduction in investments in green technologies that reduce our carbon footprint and increase energy efficiencies, and deep cuts to training and apprenticeship programs for our future workforce.

c) Solution:

Bill S224 will free up millions of dollars, provide companies with working capital, secure existing jobs, create new jobs, stimulate investment and get the construction industry back on its feet. Bill S224 will reduce government costs benefiting all Canadians while making our construction industry more competitive.

They are asking the government to vote yes on the Bill.

"We urge all political parties to take urgent action to support Canadians with legislation that mandates fair & prompt payment, helping to secure millions of Canadian middle class jobs and strengthening our global competitive advantage." Ed Whalen, president, Canadian Institute of Steel Construction.

The Canadian Institute of Steel Construction (CISC) is the voice for the Canadian steel construction industry. We promote dialogue, collaboration and commerce between industry stakeholders – advancing the benefits of steel to the consulting community, builders and buyers, academia and government. CISC represents a diverse community of structural steel industry stakeholders including manufacturers, fabricators, service centres, erectors, consultants, detailers, industry suppliers, owners and developers. The Canadian steel construction sector is a vibrant $5 billion dollar industry employing over 120,000 people in its supply chain.

 

 

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