Government of Canada Announces the Enactment of Federal Prompt Payment Legislation
On December 12, 2023, the Ministry of Public Services and Procurement announced that federal prompt payment legislation came into force on December 9, 2023, stating it was enacted “to address long-standing construction industry concerns, including the timeliness of payments, protecting vital construction jobs and making it easier to do business with the Government of Canada”.
All existing construction contracts will have 1 year, as of December 9, 2023, to comply with the Federal Prompt Payment for Construction Work Act.