Credit Laws
Trade contractors calling for Prompt Payment Legislation - Economic climate increases credit pressures on trade contractorsOTTAWA, May 14 /CNW Telbec/ - Today, the National Trade Contractors
Coalition of Canada (NTCCC) was on Parliament Hill urging politicians to
create Prompt Payment Legislation to alleviate some of the pressure from the current economic situation affecting their businesses across Canada.
NTCCC members, over 12,000 contractor companies who employ 250,000
individuals, are skilled trade contractors that are hired by general
contractors for specific parts of a larger construction project. The group of
trade contractors, from electrical to plumbing, masonry to roofing, interior
systems to sheet metal, are "the ones who do the work" and want to ensure that their services are being compensated in a timely manner.
"During these economic times, government leadership is needed now more
than ever," said John Blair, Executive Director of the Masonry Contractors
Association and Chair of the NTCCC's Prompt Payment Committee.
In the construction industry, it is a tolerated practice that there are
sometimes no strict timelines for the general contractors to pay the trade
contractors for services rendered. For a trade contractor, carrying these
costs limits the business' cash flow and a cash flow crunch limits trade
contractors' ability to carry out future business. Late payment, then, is a
serious impediment to small business, making already trying economic
situations even more difficult and, in some cases, forcing companies to
lay-off workers or go out of business all together. Small businesses rely on
predictable revenue streams to remain successful; construction trade
contractors are no different.
The NTCCC explained that the solution to the delayed payment problem is
Prompt Payment Legislation, similar to what already exists in the United
Kingdom and the United States. Prompt payment legislation in Canada would
provide contractors with the tools to ensure that their businesses can remain
competitive and productive, and would also encourage a culture of prompt
payment that is presently absent and is much needed.
"Delayed payment hurts small businesses and hurts competitiveness,"
explained Blair. "Prompt payment legislation would help to ensure that trade
contractors have the support they need to run their business effectively."
The National Trade Contractors Coalition of Canada (NTCCC) was
established in 2004 to provide an organized forum for Canada's national trade
organizations to share information, resources, and to collaborate on issues
that are of common interest to all. Its membership is comprised of national
trade organizations including:
- Mechanical Contractors - Heating, Refrigeration and Air
Association of Canada Conditioning Contractors of Canada - Canadian Electrical - Ontario Sheet Metal & Air Handling
Contractors Association Group - Canadian Masonry Contractors - Thermal Insulation Association of
Association Canada - Canadian Automatic Sprinkler - Interior Systems Contractors
Association Association - Canadian Roofing Contractors
Association
Transmitted by CNW Group on : May 14, 2009 09:30
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