b'BENCHMARKSBILL 28The Prompt Paymentfor Construction ActBy Daryl Chicoine, Partner, MLT Aikins LLP, and Matthew Deleau, Associate, MLT Aikins LLPIn recent years, a lack of promptnewest attempt, Bill 28, was introducedWhile there are a number of legislative payment from owners to generalon March 16, 2022. There are somesteps that must be completed before contractors or general contractors torelatively minor differences between theBill 28 will receive Royal Assent and subcontractors has been an issue in thefirst two attempts and Bill 28, includingcome into force, the successful adoption construction sector, affecting all tradesthe clarification of ambiguous terms inof similar legislation in neighbouring working at a jobsite. When contractorsseveral sections, but the overall functionprovinces bodes well for this third are not paid on time, it can place aand structure of Bill 28 is nearly identicalattempt to introduce prompt payment financial burden on small businessesto Bills 218 and 245. requirements in Manitoba. and block cash flow in the economy.Bill 28 was developed in response toHIGHLIGHTS OF THEIn response to this issue, the Manitoba Legislature has introduced Bill 28, Theconcerns expressed by stakeholders inMANITOBA LEGISLATIONPrompt Payment for Construction Act,the construction industry, including theIn its current state, Bill 28 is designed mirroring legislation that already existsManitoba Prompt Payment Coalitionto push money through from owner to in Ontario (since October 2019) andand its member associations, thatgeneral contractor and general contractor Saskatchewan (since March 1, 2022),delayed payments throughout theto subcontractors in a timely manner, as and will soon be in force in Alberta project payment chain are problematic.well as provide a framework for dispute (on August 29, 2022). Bill 28 directly addresses this concernresolution regarding late payment.LEGISLATIVE HISTORY by establishing payment obligationsSome of the key elements introduced by AND SCHEME and timelines for contractors andthis legislation include:While existing laws help securesubcontractors. The primary goal ofPayment to Contractors: Owners claimants rights to payment andthe legislation is to alleviate payment encourage payments to flowdelays and facilitate efficiency duringmust pay contractors within 28 days appropriately during a constructionconstruction projects. It follows theof receiving an invoice that follows project, there are few practical remediesrecommendations of the Manitoba Lawthe requirements mandated byto address payments that are late orReform Commissions November 2018the legislation.final report (The Builders Liens Act ofPayment to Subcontractors: Likewise, delayed when the amounts owing are disputed. Manitobas previous attemptsManitoba: A Modernized Approach) forcontractors must pay subcontractors to enact prompt payment legislationthe introduction of a prompt paymentand suppliers within seven days of (Bill 218, The Prompt Payments in theand private adjudication system withreceiving payment from the owner, Construction Industry Act, in April 2018regulatory oversightalthough it is and these subcontractors must pay and Bill 245, The Prompt Payments innot part of revised lien legislation, their subcontractors and suppliers the Construction Industry Act, in Juneas was recommended by the within seven days of2019) were unsuccessful. ManitobasLaw Reform Commission.receiving payment.Bill 28 was developed in response to concerns expressed by stakeholders in the construction industry that delayed payments throughout the project payment chain are problematic.20 BUILD MANITOBAwinnipegconstruction.ca'