In the Air - HRAI Industry News

Manitoba Prompt Payment Coalition Celebrates Cross-Party Support of Bill 38 – The Builders’ Liens Amendment Act (Prompt Payment) 

The Manitoba Prompt Payment (MBPP) coalition, a coalition of 32 trade associations (including HRAI) and unions across the province, applauded the unanimous support of Bill 38 - The Builders' Liens Amendment Act (Prompt Payment) received in passing second reading. 

In his opening remarks, Honorable James Teitsma, Minister of Consumer Protection and Government Services emphasized that, “Bill 38 is not a government bill or a partisan bill, it is a construction industry bill. We heard directly from Manitoba businesses that delayed payments have caused significant problems and financial hardship, even bankruptcy throughout the payment chain on construction projects. That is especially the case for small and medium sized businesses.”  

Bill 38 will ensure contractors and subcontractors are paid on time for their work, services, and materials, enabling them to meet their own financial obligations and contribute to Manitoba's economic growth. The bill aligns with prompt payment rules in other provinces and reflects the urgent need for prompt payment to support Manitoba's construction industry. It introduces a number of requirements, including establishing deadlines for making payments, requiring proper invoices, and setting rules for paying subcontractors. The bill also creates a new adjudication process to resolve payment disputes. 

Ramona Coey, Co-Chair for the Manitoba Prompt Payment Coalition states, “Bill 38 has the unequivocal support of the entire construction industry.” This bill will benefit all tiers of the construction pyramid and addresses the concerns of delayed payments of stakeholders representing diverse interests within the industry.  

Brad Mason, Co-Chair for the Manitoba Prompt Payment Coalition comments, “This legislation will have a positive impact on every Manitoban that works within or alongside our construction industry and will help to reduce construction costs through the timely payment of monies owed and elimination of unnecessary carrying costs. This may be the single most powerful and impactful legislation ever introduced within Manitoba's construction sector, certainly since the creation of the Builders Liens Act.” 

After many years of working towards the passing of Bill 38, it was encouraging to witness the unified support from all parties and brings optimism to the MBPP that this bill will go the distance. The Coalition will be seeking additional input and is keen on engaging in the committee stage of the Bills development. 

The Coalition would like to express appreciation for the tireless efforts and dedication of Honourable Reg Helwer, Honourable James Teitsma and all three provincial political parties for moving Bill 38 forward.   

Manitoba Prompt Payment (MBPP) is a sole-purpose alliance or coalition of contractor associations, unions, suppliers, general contractors, pension trust funds, who have an interest in seeing prompt payment legislation enacted in the province of Manitoba. Its purpose and goal are just that, to persuade the Manitoba government that delinquent payment is a growing problem in the construction industry and that legislation is needed to ensure that money flows as it is intended down through the contractor supply chain. 

Find Bill 38 here.