6 October 2022
Department of Transportation and Infrastructure
P. O. Box 6000
Sent via email: email@example.com
Re: Prompt Payment Legislation Consultation
I am writing today on behalf of the Fredericton Chamber of Commerce in response to the Department of Transportation and Infrastructure’s call for feedback from the construction industry regarding prompt payment legislation and the related adjudication process. The consultation document is undated but does provide a deadline for submissions of 7 October 2022.
As indicated in the discussion document, our previous submissions also call for the implementation of the “Ontario model”:
- Letter to Premier Higgs – April 2022 (Joint letter with other NB chambers of commerce)
- Letter to AG Flemming – February 2022
- Letter to Minister Steeves – April 2021
Our organization supports the position of the New Brunswick Construction Association and the New Brunswick Road Builders and Heavy Construction Association as articulated in a letter submitted to DTI, dated 29 September 2022. We also echo their position that consultation with industry regarding draft regulations should be a priority prior to implementation.
Specifically, we strongly agree that governments and their related entities should not be exempt from the pending legislation as there is no public policy justification to do so. As per their letter: “The Crown and local government combined represent major payors in the construction industry and exempting these categories from the application of prompt payment legislation would result in a significant imbalance in the industry. We note that there are no such exemptions in the Ontario model, which has largely been followed across the country.”
Consequently, there should also be no exemption provided for the adjudication process and we agree with the position of the organizations that the adjudication process should be contained within the regulations and that the very nature of prompt payment legislation dictates an expediated process that is enforceable by the courts.
Thank you for the opportunity to provide feedback on this critical issue for the construction industry. Please do not hesitate to contact us with questions or should you require further clarification.
Krista Ross, CEO, Fredericton Chamber of Commerce
cc: John-Ryan Morrison, ED, Construction Association of New Brunswick
cc: Tom McGinn, ED, New Brunswick Road Builders and Heavy Construction Association