b'FROM OUR PRESIDENTPrompt Payment in ManitobaHere We Go AgainIn a previous message, I confidently predicted that prompt payment and Bill 28The Prompt Payment for Construction Actwould be passed into law by early June. "Third times a charm," I said, but it didnt happen as envisioned. Someone once said creating legislation is a bit like making sausagesthe final product is tasty, but you dont want to see the process. Bill 28 moved along in the legislature and WCA formed a working group, carefullyand sometimes passionatelyconsidering all the components of the bill. These discussions helped everyone appreciate how nuanced the flow of money can be in the payment chain, and we have a mutual appreciation for how the finished product should operate. By May, we could sense growing concern among a number of construction groups that they had not been adequately consulted, and they felt very strongly that the path we were on would not result in a comprehensive solution to the payment problem. This opinion was communicated to the government very strongly. The legislative session ended on June 1, 2022, and Bill 28 ended with it. However, after some quiet diplomacy, we have been reassured that this government will convene a working group over the next few months to consider prompt payment within the context of reviewing the Builders Liens Act. Frankly, that is the best option moving forward, and it will hopefully put Manitoba on an equal footing with Ontario, Saskatchewan and Albertaall of which passed payment legislation within builders liens.The Builders Liens Act has long been relied upon by the industry, owners, financial agencies, suppliers and contractors themselves to ensure they are paid for the contributions they make to a project. The Act as it stands today was enacted in 1982 and hasnt really changed for 40 years, even while the industry has been evolving rapidly. The Act itself provides a set of trust provisions widely misunderstood by the industry, but designed to ensure project money is spent on a specific project. The Act also contains lien provisionsa concept widely understood but rarely used. Filing a lien stops all payments from any financial institutions and is about as subtle as a hand grenade. What is not considered in the Act is how quickly (or not) money flows within the project pyramid, which is critically important for the contractors involved. It is the money flow issue that prompt payment legislation is trying to address across Canada.In early 2018, the Manitoba Law Reform Commission elected to review the Builders Liens Act for all the reasons outlined above, issuing a discussion paper and hosting a series of meetings and interviews. The result was a final report in November 2018 that offered 87 recommendations, including prompt payment provisions, and a marked-up version of the existing Act with all the suggested changes! Unfortunately, this report has been sitting on the shelf since that time. We sincerely hope to re-engage with government over the next few months, with the Law Reform Commission report as our guide, and come up with a reformed Builders Liens Act for Manitoba that includes prompt payment provisions. Have a safe and healthy summer.Ronald Hambley8 BUILD MANITOBAwinnipegconstruction.ca'