This spring, for the first time, Alberta Infrastructure has included a prompt payment clause in its contracts with construction contractors. Prompt payment is essentially a guarantee that payments for work completed are made in a timely order. The construction industry has made calls for such clauses because for many construction businesses, especially small operations, delayed payment can disrupt business operations which leads to fewer bids on projects, higher construction costs, and reduced working capital to complete other on-going projects.
In a letter addressed to Alberta Premier Notley
, the Alberta Construction Association applauded the change and urged the province to extend these types of clauses to other public entities such as school boards and municipalities. The province has not given any other direction on this issue but municipalities should be aware that this may be a signal of a shift in the industry.
For more information, please see this article
from the Alberta Construction Magazine.
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