DCC helps increase contract payment transparency

DCC is working collaboratively with Public Services and Procurement Canada (PSPC) and the Canadian Construction Association (CCA) to bring more transparency to the payment of contractors in the construction industry. DCC’s prompt payment commitment advocates that construction-related payments should follow the principles of promptness, transparency and shared responsibility.

Since June 2017, DCC and PSPC now publicly disclose payments to prime contractors on contracts of $100,000 or more. This way, subcontractors know when they can expect payment.

“DCC believes that the transparency from public disclosure of contract payments is a positive step for its industry partners,” says James Paul, President and CEO. “We hope this will bring more fairness in payments made to construction contractors, tradespeople and suppliers, and contribute to a stronger Canadian industry overall.”

The issue of prompt payment was discussed during the 2016 annual joint meeting with CCA and major federal government construction contracting authorities including PSPC and DCC. The issue of the timing of payments throughout the construction chain was a challenge for industry. It was agreed during the meeting that CCA, PSPC and DCC would form a working group to study the issue. The June PSPC announcement is the result of this work.

The working group is now considering other measures to support timely payment in the construction industry. These measures are outlined in an Action Plan that describes the various activities and subject areas the working group is pursuing.


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