Prompt payment legislation vital

In a recent article, “Payment exemption law splits construction sector” (LP, Jan. 29) the Saskatchewan Construction Association (SCA) suggests the residential sector does not see value in prompt payment legislation. This is not true, we see it as essential that the industry pays on time. The issue is providing payment in 28 days.

We as an association support prompt payment laws; we just asked that the 28-day period extend to 31 days. We expect our members to be diligent when paying their bills, yet this is something they do on a monthly basis. For accounting and other purposes, it would be easier to adapt to this new legislation if it simply required payment within 31 days (one month).

We recognize the vulnerability of contractors in the residential sector. Even though consultation with the residential sector was minimal on this new prompt payment law, we were extremely flexible. We did not ask specifically for exemptions or any other conditions to be met. Unfortunately, the SCA was inflexible throughout this process, seeing it as unreasonable to allow small business owners and contractors one month to pay their bills. The SCA allowed public policy decision-makers to believe they represent all areas of the construction industry, but they do not. At best they represent sub trades and suppliers in the industrial and commercial sectors. Considering all factors which might delay projects (i.e. weather, red tape, delays in the supply chain, etc.), we do not think asking for a threeday extension is unreasonable in the slightest.

Stu Niebergall, president Regina & Region Home Builders Association