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B.C.’s long prompt payment saga continues with more work needed to fill in the details, state several industry experts.

The Province of British Columbia’s Construction Prompt Payment Act (CPPA) is now law but is not yet in effect.

July 7 marked the deadline for feedback to a released by the government.

“This was a discussion paper on preparing for the regulatory framework now that we have the legislation,” said British Columbia Construction Association (BCCA) president Chris Atchison.

“Globally we said this should apply to all of the construction industry and should be implemented all at one time. There’s lots of details within that to work out such as what makes up a proper invoice, (if it starts) when sent or received. We’re of the mind it should be when an invoice or payment is received.”

A BCCA release unveiled the same day as the deadline highlighted the association’s submission as representing over 5,000 companies across a wide spectrum of the construction industry.

“We all share the passion of getting this right for British Columbia,” Atchison said. “It’s all part of building the next stage of consultations with government to make sure the regulatory drafters get it correct with lots of collaboration to come.”

The prompt payment legislation in place already outlines the basics concerning invoices, he added, “and we don’t want to be overly prescriptive at this stage. There needs to be common sense, opportunity for discussion and (to) let those practices that have evolved in other jurisdictions lead the day for now until it’s demonstrated a different path would be advisable.”

Atchison singled out Fairley Strategies principal consultant Katy Fairley, who works with the BCCA as a consultant, as instrumental in talking with the industry and as a subject matter expert.

Fairley said one of the important topics raised in the government’s discussion paper was the interest rate prescribed by regulation, “and it’s important to note it’ll be the higher of either the regulator interest rate or the contract interest rate.

“We know the way contracts work in construction. There’s a power differential and making sure there’s a proper interest rate that captures the cost of delay or non-payment is crucial to the functioning of the act,” she said.

Numerous jurisdictions have implemented a form of prompt payment across Canada and Atchison referred to a previous cross-jurisdictional analysis conducted by a working group from across B.C. which analyzed what was working in other jurisdictions and consulted with subject matter experts.

“It’s a matter of sanity checking what was put forth in the (B.C.) discussion paper, to make sure we weren’t going down a path that wasn’t working in another jurisdiction,” he said.

“We’re in a place now where our contacts across Canada are seeing the path B.C. is going and saying for the most part the path we’re on is a good one and to stay the course,” he added.

Adjudication was another focus point in the discussion paper, which cited other provinces as requiring adjudicators to have at least 10 years of relevant experience in the construction industry.

Fairley said during consultation, “generally speaking, folks agreed the approach taken by Ontario and the clarity of their language is a good path for B.C. to follow, but at the discretion of the adjudication authority when appointed.”

“We don’t anticipate everyone with 10 years of construction experience has the ability to be an adjudicator,” she added.

The provincial government’s act differs from Ontario and other jurisdictions in that “some of the really tough decisions, they’ve left to now,” Fairley added.

Issues like interest rates and adjudicator qualifications “were pushed down the road and that’s where they are now. They’ve got to make decisions and my and the BCCA’s doors are open to continue to provide feedback,” she said.

“Now that we’ve got this over the start line we’ve got to get it over the finish line. We’re reflective that this is progress, but we’re tempering our enthusiasm. It’s quite sobering to know B.C. businesses are still suffering for lack of having payment certainty,” Atchison said.

“Once we see regulations the next phase will be discussing an implementation date and an adjudication authority chosen and established. We need to start putting the line in the sand so we can deliver on this hope for the B.C. construction industry.”