BILD Alberta’s Advocacy
When proposed by both the previous and current government, BILD Alberta’s advocacy focussed on delaying any consideration of Prompt Payment legislation in Alberta until a thorough assessment of the impacts in Ontario could be completed. This request was denied repeatedly.
Based on the feedback from members and discussion with the Board of Directors, BILD Alberta’s formal position on Prompt Payment was developed and served as the basis for subsequent advocacy:
BILD Alberta recognizes the success of home builders and land developers depends on strong trade and supplier partners. If trades and suppliers are struggling, the rest of the industry suffers. BILD Alberta’s current focus is on ensuring member companies remain operational post-pandemic to support the continued employment of local trades and suppliers.
BILD Alberta is committed to working with Service Alberta in developing this legislation with a detailed framework that benefits all parties but requests further work be delayed until COVID-19 stabilizes. BILD Alberta is committed to identifying solutions with the Government of Alberta to finalize legislation that protects the payment of trades and suppliers in a manner that considers the modern nature of project financing.
Specific areas of collaboration include:
- Retaining freedom to contract provisions which is crucial for businesses.
- Lengthening the lien period to ensure trades and suppliers have access to adequate legal protections. This will need to consider changes to holdbacks and lien funds to ensure cash flow is not overly restricted.
- Identifying an appropriate ‘prompt payment’ period that is longer than 28-days in order to support standard accounting procedures, financing for larger projects, time required for engineering reviews and bank draws.
- Establishing parameters around an adjudication process that ensures qualified arbitrators are experienced in construction and contracting, contract performance, and construction quality.
To date, these requests have largely been overlooked by Service Alberta. As a result, we anticipate this will create unnecessary new costs and burdens for many member companies. Legislative solutions that provide enhanced protections to trade and supplier members without burdening businesses exist, but that is not what has been presented.
Immediately following announcement of the legislation, BILD Alberta sent a letter to Minister Nate Glubish. Our central focus is to advocate for change to the Prompt Payment period beyond a calendar month. BILD Alberta will continue to engage the Minister’s Office to push for solutions that enhance protection to trade and suppliers without negatively impacting the day-to-day operations of many businesses.