Bill S-224, the Canada Prompt Payment Act reaches second reading in the Senate

Bill S-224

Bill S-224, the Canada Prompt Payment Act, reached second reading in the Senate on April 19.

Bill S-224 mandates that government institutions make progress payments to a contractor on a monthly basis, or at shorter intervals provided for in the respective contract. This payment requirement is consistent down the contractual chain.

It also accounts for milestone payments, and stated contractors have the right to suspend work, terminate a contract and collect interest on late payment.

This news follows a prompt payment summit that was held earlier in April where stakeholders and parliamentarians discussed ways to move forward on prompt payment legislation at the provincial and territorial level. Senators and members of parliament, including cabinet ministers, were in attendance, offering their support.

http://dailycommercialnews.com/Government/News/2016/4/Canada-Prompt-Payment-Act-reaches-second-reading-in-the-Senate-1015156W/

 

 

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