b'BENCHMARKSMANITOBA GOVERNMENT PASSESPROMPT PAYMENT BILL FOR CONSTRUCTION INDUSTRYBy Daryl Chicoine (Partner, MLT Aikins LLP), John Martens (Partner, MLT Aikins LLP) and Andrew Konopelny (Associate, MLT Aikins LLP)Manitoba recently passed Bill 38, Thecontractors within 28 days of receivingThe requirements of a proper invoice Builders Liens Amendment Act (Prompta monthly proper invoice fromare defined in legislation and subject to Payment). When proclaimed into force,contractors, which by default is to beadditional requirements added by the Bill 38 will bring Manitoba in line withgiven monthly, or in such longer periodcontract. The legislative requirements are Ontario, Alberta and Saskatchewan,as defined in the contract.fairly standard and include information which have enacted similar legislationOnce contractors receive payment,like the contractors name and address, for their construction industries.the date and period of work, identification The Manitoba approach largely mirrorsthey will have seven days to pay theirof the relevant contract, a description that taken in other provinces. At its heart,subcontractors, and each furtherof work and the amount being invoiced. Bill 38 introduces two new systems intosubcontractor will have seven days toThe legislation specifies that any added The Builders Liens Act: pay its contractors. Subcontractors maycontractual requirements have limitsrequest to be notified of the date thethe contract cannot require certification 1.A prompt payment system thatproper invoice was given, allowing of a payment certifier or the ownersstipulates the time in which invoicesthem to calculate their expectedapproval prior to giving the proper invoice. must be paid on constructionpayment date. However, there is a carveout in the projects; and Owners can dispute a proper monthlylegislation allowing for a contract provision requiring testing and commissioning 2.An adjudication system thatinvoice within 14 days of receiving it by prior to an invoice being given.functions as a fast-track process forproviding a notice of nonpayment to theOne clause of note is an express right of dispute resolution. contractor with the amount not beingset-off, providing that the payment may When implemented, these changes willpaid and every reason for the refusal tobe set off by claims made in good faith require project owners, developers,pay. The contractor must then provideby the non-paying party for debts, claims contractors and subcontractors tonotifications to affected subcontractorsor damages relating to the performance adjust their processes and contracts towithin seven days. of a contract or sub-contract. Relatedly, comply with the new legislation. NewIf the owner fails to provide notice ofthe legislation also has no effect on the approaches to project dispute resolutionnonpayment in the proper timeframe,requirement to maintain holdbacks under may also be necessary to reflect boththey will be liable to pay within thethe Act.the opportunities and requirements ofabove timeframes. Similarly, if theTHE ADJUDICATION SYSTEM: A FAST-the new adjudication system. contractors notice is not providedTRACK PROCESS FOR DISPUTESTHE PROMPT PAYMENT SYSTEM:to affected subcontractors within theUnder the prompt payment scheme, TIMELINES TO BE AWARE OF required time, the contractor remainsadjudication is available to resolve prompt The prompt payment regime willliable to pay its subcontractors in fullpayment disputes, as well as a range mandate payment by owners towithin 35 days. of other construction disputes. These 26 BUILD MANITOBAwinnipegconstruction.ca'