25 February 2022
Hon. Hugh (Ted) Flemming
Attorney General, Province of New. Brunswick
Marysville Place
P. O. Box 6000
Fredericton, NB E3B 5H1
Via email: ted.flemming@gnb.ca
Re: Prompt Payment Legislation
Dear Minister Flemming:
I am writing today to support the efforts of the Construction Association of New Brunswick in requesting that the province pass “Prompt Payment Legislation.” We have previously sent a letter highlighting the issue to Minister Steeves and were recently informed that your office may be the more appropriate department to express our concerns. The federal government and several provinces have taken steps to adopt prompt payment legislation. This legislation would ensure that all levels of contractors are paid on time by public and private owners.
Construction prompt payment legislation sets a system for requiring and adjudicating prompt payments on construction projects. The prompt payment legislation promotes the orderly and timely carrying out of construction projects and the current system sometimes leaves general contractors, sub-contractors and suppliers without payment for months after the completion of infrastructure projects. This causes delays in beginning new projects or companies to shut down due to the lack of payment.
In Ontario, the prompt payment regime comprises swift payment deadlines, requiring the owner either to pay within 28 calendar days or dispute within 14 calendar days, describing the reasons for non-payment. In turn, the contractor must either pay its subcontractors within seven calendar days of receipt of payment or send notices of dispute within seven calendar days.
With prompt payment legislation, we can ensure that companies are paid on time and are ready to undertake the next project to build better infrastructure in New Brunswick.
Sincerely,
Krista Ross, CEO
Fredericton Chamber of Commerce
cc: John-Ryan Morrison, Executive Director, Construction Association of New Brunswick