CHBA BC's Position on "Prompt Payment"

Mandated payment periods won’t guarantee faster payments because it doesn’t reflect how homebuilders pay their invoices.

Contractors in the homebuilding industry deserve to be paid on time – their livelihoods, families and businesses depend on it.

That’s why housing developers and builders maintain meticulous contracts and systems to ensure agreed-upon work for a project is timely paid for.

However, recent calls for what is known as “Prompt Payment” legislation would upend these business systems, forcing small-and medium-sized homebuilders to process invoices and make payments under unreasonable mandated timelines and processes.

Though well-intentioned, Prompt Payment does not guarantee payments – it just creates a different onerous process to try and collect payments and resolve disputes, on top of an ineffective lien system.

Click here to read CHBA BC’s Position Paper on Prompt Payment and the impact it could have on homebuilding.

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