New Brunswick lagging behind rest of Canada with prompt payment laws for contractors
With the price of materials skyrocketing, it’s getting difficult for contractors to front the cost for construction projects without knowing when they’ll be reimbursed.Executive director John-Ryan Morrison calls it the number one issue stopping construction companies from growing, followed by an industry-wide labour shortage.
“Currently New Brunswick has no payment timeline in the construction industry, and when payments are delayed in any part of the process, contractor cashflow is directly affected,” he said in an interview on Thursday.In his state of the province address in early April, Premier Blaine Higgs said he was committed to passing prompt payment legislation in 2022, saying it should be introduced in the spring or fall of this year.
The provincial government declined to comment or give further details, saying it is still in the early days of the process. Morrison said he’s seen construction projects in Prince Edward Island go without bids from construction companies due to payment and staffing issues, as well as a lack of housing for construction crews.
“It’s great that we want all these apartments but if there’s no one to build them then it’s not going to happen. And if there’s no affordable housing in these apartments to bring in skilled labourers, then these apartments aren’t going to get built,” he said.Residential construction in N.B. booming as province’s largest cities grow – Feb 11, 2022
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