Prompt payment in the construction industry
Learn what Public Services and Procurement Canada is doing, in cooperation with Defence Construction Canada and the Canadian Construction Association, to improve payment practices throughout the construction industry.
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Prompt payment principles
Public Services and Procurement Canada advocates that construction-related payments should follow these three principles:
- Promptness: The department will review and process invoices promptly. If disputes arise, Public Services and Procurement Canada will pay for items not in dispute, while working to resolve the disputed amount quickly and fairly
- Transparency: The department will make construction payment information such as payment dates, company names, contract and project numbers, publicly available; likewise, contractors are expected to share this information with their lower tiers
- Shared responsibility: Payers and payees are responsible for fulfilling their contract terms including their obligations to make and receive payment, and to adhere to industry best practices
Prompt payment action plan
Consult the action plan on prompt payment, developed by the government-industry working group made up of Canadian Construction Association (PDF,86Ko) (alternative formats and plug-ins), Defence Construction Canada and Public Services and Procurement Canada to know more about some of the proposed solutions being explored to improve payment timeliness in the construction industry.
- Government-Industry Working Group on Prompt Payment Interim Status Report (PDF, 1,68 MB) (alternative formats and plug-ins) (Canadian Construction Association)
For more information on the government-industry working group:
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