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ECABC Member Feedback on Construction Prompt Payment Act Discussion Paper

Introduction
ECABC is seeking feedback from members on key policy topics outlined in the Province of British Columbia’s Construction Prompt Payment Act Discussion Paper that will help inform the regulatory regime guiding the new prompt payment requirements. You can review the full Discussion Paper at this link if you would like more information or context on a topic.

We appreciate you taking the time to provide us with feedback and information to best shape the legislation to support electrical and line contractors, and industry suppliers.
Application and Coming into Force
Government is seeking industry feedback on whether any exemptions are needed and whether implementation should be phased or immediate.
1.Do you agree that the Act should apply as broadly as possible across the construction industry?
2.Are there circumstances where it would be impossible to meet the requirements of the Act and an exemption would be required?
3.Do you agree with bringing the Act into force at one time rather than a phased approach (i.e. general implementation on one date, but one sector such as residential construction getting prompt payment a year later)?
When a Record is Given or Issued, or a Payment is Made
The Act establishes timelines tied to delivery of invoices and payments, which may require clear definitions. The government’s intent is to provide clarity, while not creating requirements that are burdensome or impractical.
4.How does the construction industry generally determine when an invoice has been “given” or “delivered” to an owner?
5.If regulations are introduced to clarify these terms, should parties still be allowed to define these matters in their contracts?
Calculations of Days
The government proposes to keep the Act consistent with how other provincial legislation like the Builders Lien Act counts days, as per the guidelines in BC’s Interpretation Act. Under the current provisions, if a deadline falls on a holiday or another day the business is not normally open (i.e. Saturday), the day does not count and the deadline moves to the next day the office is open. For example, if a deadline falls on Saturday, March 21, but the office is closed on weekends, the deadline would move to the next normal business day, Monday, March 23.
6.Should day calculations follow the Interpretation Act?
7.If no, how should days be calculated?
Interest on Late Payments
Other Canadian jurisdictions have set their prompt payment interest rates on their respective pre-judgement interest rules. In BC, the courts rely on an interest rate table that is set by the Registrar to the Supreme Court of BC and is typically set at 2% below the prime lending rate of the bank that acts as the government’s banker. It’s currently 2.45%.
8.Are there impacts that we should be aware of with the interest rate on late payments being tied to the Supreme Court Registrar’s guidelines?
9.If not tied to the Supreme Court Registrar, how should the rate be established?
Adjudicators' Qualifications and Fees
Qualifications
The Act establishes an adjudication process for payment disputes, which will require the appointment of adjudicators. Ontario adjudicators require 10+ years of relevant construction experience and complete training provided by the adjudication authority.

Discussion:
Feedback is requested on required qualifications and alignment with other jurisdictions.
10.What qualifications should adjudicators have?
11.Should BC align with other jurisdictions?
12.Should there be additional BC-specific requirements?
Fees
In most Canadian jurisdictions, adjudication fees are either agreed to by the parties and the adjudicator or, if no agreement is reached, set by the adjudication authority under a prescribed fee schedule. Fees are typically based on the amount in dispute, rather than the total value of the contract. Some jurisdictions vary the fee depending on whether the parties jointly selected the adjudicator.
13.What factors should be considered in establishing appropriate fee amounts for adjudications?
14.What considerations should be made to ensure adjudication is accessible?
Industry Readiness and Support
BC’s Construction Prompt Payment Act enables government to establish standard forms, including:

• A required form for a proper invoice

• A required form for a notice of non-payment

• A required form for a notice of adjudication

• A required form for a response to a notice of adjudication

Ontario has established forms for notices of non-payment and notice of adjudication (but not a “proper invoice”). Government anticipates industry would like similar standardized forms established under the Act.

Government is seeking input on preparedness, challenges, and supports needed.
15.What standardized forms should be developed under the Act at the outset?
16.What information should be part of the proper invoice?
General Feedback
17.What, if any, considerations are missing from this discussion paper that would ensure the success of prompt payment legislation being implemented in B.C.?
18.What tools, data, guidance materials, or engagement mechanisms would support effective implementation of the Act?
ECABC Support
19.Is there anything you would like to see ECABC provide to its members to support implementation and adoption of prompt payment?
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