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We would like to sincerely thank, the Gal Power representative, Reko, for his assistance on Saturday, September 22, 2018 following the severe storms and tornado damage in Ottawa causing prolonged hydro outages across the city. His attention to detail, and efforts to go above and beyond to assist our clients at 354 Gladstone Ave, OCSCC 903, was greatly appreciated.

Michelle Compton RCM Vice-President
Complete Condo Management

Tuesday, 25 April 2017

The Ontario Prompt Payment Bill: The Benefits of This Potential Legislation and How It Could Affect You

For years, going back to at least 2013, various parties have tried to see the "Prompt Payment Bill" passed into law in Ontario. Unfortunately, thus far it has had to be introduced as a private member's bill, making it far less likely to pass than bills with executive backing.

However, momentum and support for the bill continues to grow, with a wide variety of private sector businesses, unions, and other industrial and commercial interests all throwing their weight behind it. 2017 could become the year the bill finally overcomes its numerous bureaucratic hurdles and is passed into law.

If so, it could be a significant boon to private contractors and workers of all types throughout the Province.

What the Prompt Payment Bill Would Do, If Passed

Simply put, the Prompt Payment Bill would mandate that all contracted private construction work which is certified as complete within the scope of the contract, must be paid for within thirty days of completion.

The Prompt Payment Bill would also mandate ongoing scheduled monthly payments for longer-term work. If the contracting company fails to pay within the allotted timeframe, interest and penalties would accumulate. Should non-payment continue for an extended period, contractors would have the right to suspend work without penalty until the payment situation is rectified.

Why the Prompt Payment Bill Is Needed

While many Provinces have passed bills mandating prompt payment in public-sector contracted work, thus far little legislation exists addressing the same issue in private sector work.

This matters because delayed payment is seen as a growing problem in most sectors. It is not uncommon for contractors to be forced to wait four months or longer for payment. They may also have to work unpaid on longer projects for months before any compensation comes in. This obviously represents a serious threat to the financial viability of many smaller companies, who may not have the resources to wait for months for any compensation.

Further, other nations are already addressing the issue. Thirty-one US states have comparable laws, as well as the entirety of the EU, the UK, Australia, and New Zealand.

GAL Power Supports the Prompt Payment Bill

As a top provider of diesel generators in Canada, GAL Power understands the clear need for the bill. We call upon the Provincial Government to make 2017 the year Ontario joins the world in having fair payment laws.

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