CANADA PROMPT PAYMENT ACT UPDATE:
SENATE HEARINGS LEAD TO PROPOSED AMENDMENTS
In an effort to lead reform in the construction industry, the Canadian Senate introduced prompt payment legislation under Bill S-224, the Canada Prompt Payment Act (the “Bill”) which, if passed, would apply to construction contracts and related subcontracts made with the Federal Government.
After passing its second reading last November, the Bill was referred to the Standing Committee on Banking, Trade and Commerce (the “Committee”).
The Bill was the topic of discussion in four Committee meetings in mid-February; over the course of four days, the Committee heard from representatives from the industry as well as government officials and legal experts in construction law and …show more content…
Chipeur opined that the Bill was in fact constitutional. He stated:
The Supreme Court of Canada is clear that Parliament has jurisdiction over federal property and that anything that is integral to the property or the creation of that property is within the federal jurisdiction and is paramount to any provincial common law or legislation.
The Reynolds Report
Bruce Reynolds and Sharon Vogel of Borden Ladner Gervais LLP were the co-authors of the Reynolds Report, which was released by the Ontario government last September. Among their conclusions was that a vital element of a prompt payment system is a specialized adjudication system.
The Committee was receptive to the comments made by Reynolds and Vogel and acknowledged that amendments had already been drafted to revise the Bill based on recommendations made within their report.
It was acknowledged that the Committee should seek to ensure that there is consistency between the final Federal bill and legislation being considered by various provincial governments. It was noted that Ontario plans to have legislation tabled prior to the end of the calendar year.
The Committee Report
Several proposed amendments to the Bill were put forward in the Committee
SENATE HEARINGS LEAD TO PROPOSED AMENDMENTS
In an effort to lead reform in the construction industry, the Canadian Senate introduced prompt payment legislation under Bill S-224, the Canada Prompt Payment Act (the “Bill”) which, if passed, would apply to construction contracts and related subcontracts made with the Federal Government.
After passing its second reading last November, the Bill was referred to the Standing Committee on Banking, Trade and Commerce (the “Committee”).
The Bill was the topic of discussion in four Committee meetings in mid-February; over the course of four days, the Committee heard from representatives from the industry as well as government officials and legal experts in construction law and …show more content…
Chipeur opined that the Bill was in fact constitutional. He stated:
The Supreme Court of Canada is clear that Parliament has jurisdiction over federal property and that anything that is integral to the property or the creation of that property is within the federal jurisdiction and is paramount to any provincial common law or legislation.
The Reynolds Report
Bruce Reynolds and Sharon Vogel of Borden Ladner Gervais LLP were the co-authors of the Reynolds Report, which was released by the Ontario government last September. Among their conclusions was that a vital element of a prompt payment system is a specialized adjudication system.
The Committee was receptive to the comments made by Reynolds and Vogel and acknowledged that amendments had already been drafted to revise the Bill based on recommendations made within their report.
It was acknowledged that the Committee should seek to ensure that there is consistency between the final Federal bill and legislation being considered by various provincial governments. It was noted that Ontario plans to have legislation tabled prior to the end of the calendar year.
The Committee Report
Several proposed amendments to the Bill were put forward in the Committee