In this Update:
- The Federal Prompt Payment for
Construction Work Act (the Federal Prompt Payment
Act), which sailed through as part of the larger
federal budget Bill C-97 on June 21, 2019, addresses the
non-payment of contractors and subcontractors performing
construction work for federal construction projects.
- While the Federal Prompt Payment
Act became law on June 21, 2019, it is not effective law yet.
We are awaiting the Cabinet’s order to determine the
effective date.
- Given the surprising transition
provisions, stakeholders and participants in federal projects and
federally regulated industries are advised to keep a close watch on
developments.
The Federal Prompt Payment Act was first introduced
into the House of Commons on April 8, 2019, as part of the larger
budget Bill C-97 (Budget Implementation Act,
2019, No. 1). Somewhat surprisingly, the Bill was passed by
the House of Commons on June 6, 2019, and later passed by the
Senate on June 20, 2019,
