Sunday, June 23, 2024

ACA Board Agrees To Push For Prompt Payment Solutions

The ACA board on Friday June 12 agreed on the following recommendations for prompt payment:

  1. ACA initiate collaborative industry dialogue to develop a voluntary industry solution (voluntary code of practice) to demonstrate willingness to lead even before legislation is developed.
  1. ACA advocate a legislative solution to remedy the issue of late payments that are not in compliance with the payment provisions of the construction contract, using CCDC contract language. Further, that ACA seek a solution that:
    a) Accommodates payment provisions in alternate financing contracts and;
    b) Reduces the potential for harming contractor’s reputations in securing repeat business from owners.
  1. ACA undertake the following work plan to successfully reach the end goal of a satisfactory legal solution:

    A. Clarify the arguments that persuaded other governments to act, that is, what is the public interest (including reducing the cost of construction) – some of this work has been done in the Canadian context by Prism Research

    B. Build the coalition:
    – Examine how consensus is being achieved in other provinces
    – Identify all stakeholders and coordinate discussions for collaboration (AUMA, COAA, CHBA-AB, ARHCA, and others)
    – Undertake town halls and bilateral meetings in order for stakeholders to be able to identify concerns and discuss potential solutions (including the voluntary code of practice)

    C. Undertake the research:
    – Examine best practices in similar jurisdictions with legislation and voluntary codes
    – Identify how to address the concerns that have been identified

    D. Develop an evidence-based rationale to seek the support of government and legislators

    E. Identify potential champions (Premier, Ministers, other influencers such as labour)

    F. Work with the champions to advance a proposal for legislation