New rules will be coming to Alberta this year regarding prompt payment in the construction industry.
Service Alberta Minister Nate Glubish was on the Trending 55 Hot Seat and says these rules will address some long standing issues in the industry.
“When it used to take an average of about 40 days for a payment to be made, that average had increased to well over 70 days. In extreme cases, we were seeing 100-120 days before payments were made. As a small business, how are you able to plan to run your business and how are you able to pay your employees and pay your bills if the contractors that you’re working for is taking that long to pay you.”
One of the regulations that will come into effect in August will be 28-day timelines for owners to pay proper invoices from general contractors.
Glubish says these enhanced protections in the industry will help support the economic recovery.
“By insuring that our construction industry is stronger and more healthy, we will encourage more hiring, more jobs, more investment and more expansion. We will ensure that the companies working in that space are in a stronger position and the folks working for them are in a stronger position. We know that one in 10 Albertans works in the construction industry, so this is a huge industry with very real impacts on everyday Albertans.”
We talked to the Minister on the Trending 55 Hot Seat, you can hear that full discussion below.
– Kyle Moore, Trending 55 Newsroom
