Victoria (Pace Group) – The BC Construction Association (BCCA) has released a formal submission in response to the provincial government’s Construction Prompt Payment Act Discussion Paper, supported by construction companies and associations from across the province, as the next step toward implementation of the Act’s regulatory framework.
The submission is backed by firms and associations representing over 5,000 companies, working across the single-family and multi-family residential, commercial, institutional, industrial, and civil construction sectors, delivering projects of every size and scale throughout British Columbia.
“Ambiguous or poorly defined regulations invite inconsistent interpretation, and for an industry already under financial strain, that kind of uncertainty could have serious unintended consequences,” said Chris Atchison, President of the BCCA. “We need the provincial government to prioritize getting this work done, getting the regulatory details right in close consultation with industry, and bringing the Act into force in full, for everyone, at the same time.”
The positions and recommendations contained in the submission reflect extensive collaboration among industry associations, allied stakeholders, and leaders across the construction sector. They are grounded in practical industry experience, informed by research into the realities of other Canadian jurisdictions, and refined through legal review to support a practical, effective, and nationally consistent framework for British Columbia.
“Implementing the Act is an achievable initiative that requires no significant spending and will deliver tangible benefits across the construction sector that will strengthen our province’s communities and economy,” emphasized Atchison. “The submission is unequivocal that the Act must apply to the entirety of the construction industry and come into force at one time and that education and industry resources, not exemptions or delayed implementation, are the appropriate response to support industry through this transition.”
The submission further identifies two priority areas for the regulations that will govern the Act:
1. Interest on Late Payments
The prescribed interest rate plays a critical role in determining whether the Act achieves its intended purpose. BCCA recommends that the prescribed interest rate be based on the long-established provisions found in the standard construction contracts published by the Canadian Construction Documents Committee (CCDC) and the Canadian Construction Association (CCA). These contracts are widely used and understood across BC’s construction industry and provide for interest at 2% above prime for the first 60 days and 4% above prime thereafter. BCCA considers the CCDC and CCA interest provisions to be representative of the market.
2. Regulation-Making Powers Under Section 49
The regulation-making powers in section 49 are fundamental to the successful implementation of the Act. Given their significance, BCCA anticipates the government will continue engagement with the Association throughout the regulatory development process and welcomes the opportunity to review these matters with government as they are considered and developed.
For more information, BCCA’s full response to the Discussion Paper can be found here: bccassn.com/JointIndustryResponse-CPPADiscussionPaper
About BCCA: The British Columbia Construction Association (BCCA) is a non-partisan and non-profit organization, working with four Regional Construction Associations (NRCA, SICA, VICA and VRCA) to serve more than 10,000 employers in the province’s industrial, commercial, institutional, and residential multi-unit (ICIR) construction industry regardless of labour affiliation. BCCA advocates on behalf of all employers to ensure British Columbia’s construction sector remains productive and resilient.
For more information about BCCA, visit: bccassn.com
