There’s a scissor lift for prompt payment but industry still using a wooden ladder: Leduc - constructconnect.com

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Prompt Payment is not working the way it should be in Ontario and the approach needs to change. That was the message from Dan Leduc, partner at Soloway Wright LLP, who worked for Prompt Payment Ontario and was instrumental in bringing legislation into th

Prompt Payment is not working the way it should be in Ontario and the approach needs to change.

“If you don’t have a notice of non-payment it’s even easier to get an adjudication because you can say they’re supposed to give you the 14 day notice.” “We’re all being penalized because of increases in interest rates but on the upside it also means many of your contracts are carrying a higher rate of interest,” Leduc pointed out. “If you are tied to a CCA I or a CCDC 2 contract the interest rate is typically two points above prime for the first 60 days, four points above prime after that. We’re talking eight or nine points now.

“ ‘head office handles that,’” he stated. “‘No, you are the person that’s named on the proper invoice from the owner, you’re the guy, how are we getting paid?’ You would be surprised how many PMs and middle managers don’t know about the prompt payment regime.”

 

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