Prompt payment vital to industry

In response to Stu Niebergall’s Feb. 10 letter, the Saskatchewan Co-operative for Integrity in Home Construction (IHC) wishes to commend the Regina & Region Home Builders’ Association for their willingness to support prompt payment laws.

We agree that prompt payment is essential and safeguards all sectors of the construction industry. The members of IHC are not convinced, however, that the debate is centred on a reasonable request to extend the 28-day pay period to 31 days.

While this may be the only demand made by the Regina & Region Home Builders’ Association, other stakeholders have demanded that home builders should be altogether exempt from the prompt payment legislation.

Home builder exemptions from prompt payment is not acceptable to IHC members. The reason why we hold this view is because there have been instances where home builders have delayed payments for 60, 90, and even 180 days, and this has resulted in financial ruin for both subcontractors and homeowners.

The longer a payment is delayed, the greater the financial risk to building suppliers and subcontractors. That means greater risk to the Saskatchewan economy. Most home builders pay their bills on time, but there are some who do not. Ultimately, the prompt payment legislation will only negatively affect those home builders who are not already in the habit of paying their bills in a timely manner.

Britt Baumann, president, Saskatchewan Cooperative for Integrity in Home Construction, Dundurn