Prompt payment legislation received Royal Assent in New Brunswick in June 2023, but contractors there continue to see late payments pile up for completed work and stakeholders say the provincial government continues to “drag its heels” on a date for enforcing the act.
While the province has indicated the act’s implementation is expected in 2027, the Construction Association of New Brunswick (CANB) and other stakeholders have not seen draft regulations nor has there been a formal public review process, says John-Ryan Morrison, CANB executive director.
“It shouldn’t take three years to pass a piece of legislation that exists in six other provinces. We’re not trying to reinvent the wheel,” says Morrison.
“There is a clear gap between government commitments and action, and a growing sense of frustration within the industry.”
Payment delays have been especially hard on small to medium-sized contractors in New Brunswick, he says.
A recent member survey by CANB found about 80 per cent of its respondents still experience late payments and 51 per cent see “frequent or consistent delays,” says Morrison.
According to research by CANB, $165 million is owed to small and medium-sized contractors every month because of delayed payments for completed work.
“It’s a level of funding they can’t reinvest into their companies or into training. Depending on the size of the organization, they might not be able to bid on the next project because they haven’t been paid for the last one.”
Morrison says following a sustained lobby effort that received support from the province’s three political parties, legislation was passed on June 16, 2023.
Why the delays bringing the act into force?
“The consistent response from the province has been that work is ongoing. Given that established models already exist across Canada — and that industry has even expressed a willingness to adopt a harmonized approach, such as aligning with Nova Scotia — this prolonged delay raises legitimate questions,” he adds.
Morrison says it is an accountability issue with “real economic consequences for New Brunswick businesses.”
While the government did not grant Daily Commercial News an interview, in a written statement Jadesola Emmanuel, communications officer with the department of justice and public safety, indicated while work is ongoing to develop regulations, there is no timeline for full implementation.
“However, draft regulations are expected to be released for public review in 2026,” she wrote.
Morrison says at a time when it is difficult to find contractors for available work, “nobody’s willing to do a simple piece of legislation that has existed in the U.S. since the 1980s and is in six other provinces.”
“We talk about Build Canada Homes, we talk about wraparound infrastructure and other construction initiatives but they all require a strong financially-stable construction industry and nobody’s willing to do anything about that,” he says.
