Bill S-224 explained in plain English
An Act respecting payments made under construction contracts
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 42nd Parliament, 1st Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill S-224 creates the Canada Prompt Payment Act to require government institutions and construction contractors to make timely payments to contractors and subcontractors on federal construction projects, with specified payment deadlines, dispute resolution procedures, and remedies for non-payment.
Bill S-224 proposes a new federal law called the Canada Prompt Payment Act. The law aims to ensure that contractors and subcontractors working on construction projects for the federal government are paid on time. Here is what the act would require: **Government institutions** must pay contractors: - Progress payments monthly (or more frequently if the contract specifies) within 20 days of payment approval - Final payments on the date set in the contract or within 20 days of approval, whichever is sooner **Contractors** must pay their subcontractors: - Progress payments monthly (or more frequently) within 23 days of payment approval - Final payments within 30 days of approval or on the contract deadline, whichever is sooner **Subcontractors** submitting payment applications must do so on the 25th day of the month for monthly payments. **Payments are automatically approved** if a payer (government institution or contractor) does not respond to a payment application within specified timeframes (10 days for contractors, 20 days for subcontractors). A payer can only dispute specific amounts if they provide written reasons and references to the contract. **Milestone payments** (lump sum payments at project stages) are allowed only if the government contract permits them, and subcontractors must receive advance notice. **Remedies for unpaid invoices:** - Contractors and subcontractors can suspend work if payments are overdue and can suspend passing payments to their own subcontractors - They can refer payment disputes to a binding adjudication process within 28 days - They can terminate the contract for non-payment after giving 14 days' notice **Interest** must be paid on overdue amounts at the rate in the contract or a prescribed rate, whichever is higher. **Subcontractors have information rights**, including the right to know payment deadlines in the government contract and receive notice when upstream payments are received. The act applies to all construction contracts between government institutions and contractors, and to related subcontracts. It does not apply to employment contracts or classes of contracts prescribed by regulation. The law comes into force six months after royal assent.
- Enacts the Canada Prompt Payment Act to regulate payment timelines for construction work under federal government contracts
- Requires government institutions to pay contractors monthly progress payments within 20 days of approval or certification
- Requires government institutions to make final payments by the contract deadline or within 20 days of approval, whichever is earlier
- Requires contractors to pay subcontractors monthly progress payments within 23 days of approval
- Requires contractors and subcontractors to make final payments within 30 days of approval or by the contract deadline, whichever is earlier
- Establishes automatic approval of payment applications after 10 days (for contractors) or 20 days (for subcontractors) if the payer does not respond
- Allows payers to dispute only specific amounts in a payment application if they provide written notice with reasons and contract references
- Permits milestone (lump sum) payments only when authorized in the government contract and requires notice to subcontractors
- Allows contractors and subcontractors to suspend work performance if payments are overdue
- Allows contractors and subcontractors to suspend passing payments to lower-tier subcontractors if they experience non-payment
- Creates a binding adjudication process for payment disputes, with decisions within 28 days or as agreed by parties
- Allows contractors and subcontractors to terminate construction contracts after providing 14 days' notice of non-payment
- Requires payment of interest on overdue amounts at the contract rate or prescribed rate, whichever is greater
- Requires contractors to disclose payment deadlines and dates/amounts of payments received to subcontractors
- Prevents parties from contracting out of or waiving rights, obligations, or remedies under the act
- Excludes employment contracts and classes of contracts prescribed by regulation
- Authorizes the Governor in Council to make regulations to carry out the purposes of the act, including dispute resolution procedures
- Comes into force six months after royal assent
- Government institutions (federal departments, ministries, and Crown corporations listed in the Access to Information Act and the Financial Administration Act)
- Contractors performing construction work directly for government institutions
- Subcontractors performing construction work for contractors or other subcontractors on government projects
- Payment certifiers appointed under construction contracts
- Adjudicators selected to resolve payment disputes
- Government institutions must make progress payments monthly or at shorter intervals specified in the contract, within 20 days of approval
- Government institutions must make final payments by the contract deadline or within 20 days of approval, whichever is earlier
- Contractors must pay subcontractors monthly progress payments within 23 days of approval or certification
- Contractors and subcontractors must make final payments within 30 days of approval or by the contract deadline, whichever is earlier
- Payment applications are automatically approved if the payer does not respond within 10 days (for contractors) or 20 days (for subcontractors), except where the payer disputes specific amounts with written reasons
- Payers may only withhold amounts from a payment that are disputed or require amendment, and disputes are limited to loss, damage, correction costs, or disagreements over change values
- Contractors and subcontractors may suspend work performance if payments are overdue and must provide written notice of default to the payer
- Contractors and subcontractors may suspend passing payments to lower-tier subcontractors if they experience non-payment, provided they diligently pursue adjudication
- Contractors and subcontractors must pay interest on overdue amounts at the rate in the contract or the prescribed rate, whichever is greater
- Contractors and subcontractors may refer payment disputes to adjudication, with an adjudicator's decision binding until final legal determination
- Contractors and subcontractors may terminate construction contracts for non-payment after providing 14 days' notice if the payer does not pay
- Non-government payers must provide notice to subcontractors of payment dates and amounts received on the construction work
- Contractors and subcontractors must provide subcontractors with advance written notice of any milestone payments
- Contractors must disclose payment due dates in the government contract if requested by a subcontractor
- No person may waive any rights, obligations, or remedies provided under the act
- The act comes into force six months after royal assent (Section 24)
- Interest must be paid on overdue payments at the rate specified in the construction contract or the rate prescribed by regulation, whichever is greater
- Payment amounts are not specified in the bill (these depend on individual construction contracts)
- The cost to the federal government of administering the act and appointing adjudicators is not specified
- A payer who fails to make payment in accordance with the act is in default, and the payee may suspend work performance and provide written notice of default
- A payer who fails to make payment in accordance with an adjudicator's decision is in default after 7 days, and the payee may suspend work performance
- Contractors and subcontractors whose payment obligations are suspended must pay interest on suspended amounts from the original due date
- Suspension of work performance or suspension of payments to lower-tier subcontractors in accordance with the act does not constitute a breach of the construction contract
- Termination of a construction contract in accordance with the act does not constitute a breach of the construction contract
- A payer who fails to disclose payment information or misleads a subcontractor regarding payment information is liable to the payee for any resulting damages, and a court may order compliance and award costs
- An adjudicator's decision is binding on the parties and enforceable as a judgment of a court of competent jurisdiction until the dispute is finally determined by legal proceedings, arbitration, or settlement
- The bill does not specify the prescribed rate of interest on overdue payments; this will be set by regulation after the act is passed
- The bill does not identify which classes of construction contracts may be excluded by regulation (Section 5)
- The bill does not specify the procedures, qualifications, or appointment process for adjudicators other than general references to the construction contract, party agreement, or court appointment (Section 20)
- The bill does not specify how disputes over milestone payment values or completion of milestones will be adjudicated
- The bill does not specify remedies or procedures if an adjudicator fails to render a decision, other than allowing referral to another adjudicator
- The bill does not specify what constitutes 'sufficient cause' for a payment certifier's failure to issue a certificate for final payment within 10 days
- The bill does not address interaction with provincial mechanics' lien laws or other provincial construction payment legislation
- The bill does not specify the consequences for a government institution's failure to comply with payment obligations
- The bill does not clarify whether suspension of performance by a subcontractor must occur within a specific timeframe after non-payment
A new federal law is created to establish mandatory payment timelines and remedies for construction work on federal government projects. The law specifies when government institutions, contractors, and subcontractors must pay for construction work and what happens if they do not.
Source: Section 1
The definition of 'government institution' in the new act references the meaning of Crown corporations in the Financial Administration Act (section 83).
Source: Section 3 (definition of government institution)
The definition of 'government institution' in the new act references bodies and offices listed in Schedule I to the Access to Information Act.
Source: Section 3 (definition of government institution)
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
Bill S-224, concerning payments in construction contracts, completed its first reading in the Senate on April 13, 2016, and proceeded through further Senate stages before moving to the House of Commons.
This artifact describes the first reading of Bill S-224 in the Senate on April 13, 2016. This stage is a procedural step where a bill is formally introduced. The bill, titled "An Act respecting payments made under construction contracts," was later considered through various stages in the Senate, including second reading, committee study, report stage, and third reading, before awaiting first reading in the House of Commons. The provided text lists the dates for these subsequent procedural steps but does not contain the full text of the bill or details of the debates.
Bill S-224, an act respecting payments made under construction contracts, was introduced and received its first reading in the Senate on April 13, 2016.
On April 13, 2016, in the Senate, Bill S-224, An Act respecting payments made under construction contracts, was introduced and received its first reading. This marks the initial procedural step for the bill in the Senate. The rest of the sitting involved other Senate business, including senators' statements on various topics, tabling of reports, notices of motions, debates on other bills, and a question period with the Minister of Transport.
The Senate completed the second reading stage for Bill S-224, An Act respecting payments made under construction contracts, on April 19, 2016, and the bill has since moved through further Senate stages and is now awaiting first reading in the House of Commons.
This artifact outlines the procedural steps taken for Bill S-224, An Act respecting payments made under construction contracts, during its second reading stage in the Senate. It indicates that the second reading was completed on April 19, 2016. The artifact also lists the dates of major speeches given at this stage, as well as subsequent stages like committee consideration, report stage, and third reading. The bill is currently awaiting first reading in the House of Commons.
The Senate's second reading debate on Bill S-224, concerning payments in construction contracts, was adjourned on April 19, 2016, as part of a broader Senate sitting that included various other proceedings.
During a Senate sitting on April 19, 2016, the second reading debate for Bill S-224, An Act respecting payments made under construction contracts, was adjourned. The sitting also included statements, routine proceedings, question period, and debates on other matters and committee reports. The debate on Bill S-224 was adjourned to allow for further consideration.
During a Senate sitting on April 19, 2016, senators discussed various topics, including international agreements, firefighter safety, the role of independent senators, and debated seating arrangements, while also advancing legislation like Bill S-224 (Canada Prompt Payment Act) and committee studies.
This record details a sitting of the Senate on April 19, 2016. The Senate began with Senator statements, including congratulations to former Supreme Court Justice Gérard La Forest on his ninetieth birthday, recognition of visiting firefighters, a discussion on World Intellectual Property Day, remarks on the role of independent senators, and a mention of the International Day of Pink Gala. Routine proceedings included tabling of reports from the Assemblée parlementaire de la Francophonie and notices of motions regarding committees studying the Criminal Code and French-language school access in British Columbia. Question Period addressed topics such as the Canada-Panama Free Trade Agreement, firefighter safety, the role and title of the Government Representative in the Senate, crisis on reserves, international human rights reports, government support for Bombardier Inc., and earthquake relief for Ecuador. Orders of the day involved a point of order, a motion to affect Question Period, debate on the Speech from the Throne, committee authorizations, and debates on several bills, including Bill S-224 (Canada Prompt Payment Act), which was adjourned for debate. A significant portion of the sitting was dedicated to a point of order concerning seating arrangements for senators and the Speaker's role in this matter. The sitting concluded with the adoption of several committee reports and their associated budgets for travel and studies.
The Senate sitting on June 7, 2016, featured a debate on Bill S-224 concerning prompt payments in construction contracts, along with other legislative and procedural business.
This artifact is a record of a Senate sitting on June 7, 2016. During this sitting, various procedural matters were addressed, including the tabling of reports and the adoption of motions. Notably, there was a debate concerning Bill S-224, "An Act respecting payments made under construction contracts," also referred to as the proposed Canadian prompt payment act. The debate focused on the principles of the bill, which aims to ensure timely payments in construction contracts, particularly for small and medium-sized businesses. Several senators expressed support for the bill's intent and encouraged its expedited progression to committee. Other discussions included amendments to the Copyright Act (Bill C-11) to align with the Marrakesh treaty, amendments to the Air Canada Public Participation Act (Bill C-10), and matters related to human rights in Russia. The sitting also included Question Period where the Minister of Small Business and Tourism answered questions on various topics. The record concludes with several debates being adjourned.
The Senate continued the debate on Bill S-224, an act to ensure prompt payment under construction contracts, highlighting its importance for small businesses and efficient government spending.
This record details a sitting of the Senate on June 7, 2016. The sitting included various procedural activities such as tabling reports, introducing motions, and continuing debates on several bills. Notably, the debate on Bill S-224, An Act respecting payments made under construction contracts, was continued. This bill, also referred to as the proposed Canadian prompt payment act, aims to address inefficiencies in government contract spending, particularly concerning timely payments to subcontractors. The bill proposes requiring monthly progress payments from the government, mandating contractors to pay subcontractors within 20 days of receiving payment, allowing unpaid contractors to suspend work without penalty, and establishing a dispute resolution process. The debate emphasized the importance of these measures for small and medium-sized businesses and the potential for improved economic efficiency.
During the Senate's second reading debate on Bill S-224, Senator Fraser explained her limited understanding of the bill's purpose to protect subcontractors and adjourned the debate.
On October 26, 2016, the Senate continued the debate on Bill S-224, An Act respecting payments made under construction contracts. Senator Joan Fraser spoke about the bill, explaining that she had previously taken an adjournment on it and that her understanding was limited. She noted that Senator Plett had argued that the bill aimed to protect subcontractors who may not receive fair treatment from main contractors. Senator Fraser indicated she could not provide much further detail on the bill and left the floor open for other senators who wished to participate in the debate. The debate was then adjourned.
On October 27, 2016, the Senate sat and continued debate on Bill S-224, An Act respecting payments made under construction contracts, among other legislative and procedural business.
This artifact is a record of a Senate sitting that took place on October 27, 2016. During this sitting, the Senate engaged in various procedural activities including Senators' Statements, Routine Proceedings, Question Period, and the consideration of various Orders of the Day. Notably, there was a debate continued on Bill S-224, An Act respecting payments made under construction contracts. The sitting also included debates on other bills, motions, and committee reports, covering a wide range of topics from international trade and human rights to national symbols and Senate modernization. The specific details of the debate on Bill S-224 indicate that it was at the second reading stage, and the debate was adjourned to a later sitting.
On November 2, 2016, the Senate debated Bill S-224 (construction contract payments), Bill S-226 (Magnitsky Law), Bill S-228 (marketing to children), and Bill S-229 (underground infrastructure safety), alongside discussions on Senate modernization.
On November 2, 2016, the Senate continued debate on several bills. The Senate also heard statements on the Sobey Art Award, Library Month, and acknowledged visitors in the gallery. Routine proceedings included notices of motion regarding Question Period and adjournment. The main debate of the day involved Bill S-224, An Act respecting payments made under construction contracts, which was debated at second reading. Senators also debated Bill S-226, the Justice for Victims of Corrupt Foreign Officials Bill (Sergei Magnitsky Law), Bill S-228 to amend the Food and Drugs Act (prohibiting food and beverage marketing directed at children), and Bill S-229, An Act respecting underground infrastructure safety. Additionally, the Senate adopted a report on its study of maritime search and rescue activities and continued debate on the modernization of the Senate, specifically concerning committee composition and the role of the Speaker. The sitting concluded with the adjournment of debate on several items.
During a Senate sitting on November 28, 2016, Bill S-224, concerning payments in construction contracts, was read a second time and referred to committee, with a senator speaking in support and outlining potential amendments.
This artifact is a record of a Senate sitting on November 28, 2016. The sitting included Senators' Statements, Routine Proceedings, Question Period, and Orders of the Day. The item related to Bill S-224, "An Act respecting payments made under construction contracts," was at the second reading stage. Senator Pierrette Ringuette spoke in favour of the bill, noting its importance for prompt payments to contractors and the need for federal and provincial legislation to be consistent. She mentioned a report from Ontario's construction lien act review as a relevant study and indicated an intention to propose an amendment at the third reading stage to ensure federal standards match or exceed provincial ones. The bill was read a second time and referred to the Standing Senate Committee on Banking, Trade and Commerce. The rest of the sitting involved debates and discussions on other bills and various topics, including freedom of the press, the passing of Fidel Castro, youth employment, and Senate modernization.
Bill S-224, concerning payments under construction contracts, completed its committee review in the Senate on April 4, 2017, before moving to further readings and then awaiting introduction in the House of Commons.
This record shows that Bill S-224, an act respecting payments made under construction contracts, completed its committee stage in the Senate on April 4, 2017. The bill then proceeded through report stage and third reading in the Senate before awaiting its first reading in the House of Commons.
The Senate presented the Twelfth Report of the Standing Senate Committee on Banking, Trade and Commerce regarding Bill S-224, An Act respecting payments made under construction contracts, and scheduled it for further consideration.
On April 4, 2017, the Senate convened. During the sitting, the Twelfth Report of the Standing Senate Committee on Banking, Trade and Commerce concerning Bill S-224, An Act respecting payments made under construction contracts, was presented. The report was subsequently placed on the Orders of the Day for consideration at the next sitting. Other Senate business included the tabling of a certificate of nomination, presentation of committee reports on other bills, notices of motions regarding appointments and committee studies, and debates on various bills including those related to genetic non-discrimination, the Canada Labour Code, the National Anthem Act, the Canada Evidence Act, the Criminal Code, the National Security and Intelligence Committee of Parliamentarians Act, the Controlled Drugs and Substances Act, the Canadian Jewish Heritage Month Act, and the Citizenship Act. Question Period also took place, with the Minister of Veterans Affairs and Associate Minister of National Defence responding to questions.
The Senate Report stage for Bill S-224 occurred on April 6, 2017, but was not completed, and the bill is now awaiting first reading in the House of Commons.
This artifact documents the Senate Report stage for Bill S-224, An Act respecting payments made under construction contracts, on April 6, 2017. The stage was not completed. The bill has since moved to the House of Commons for its first reading.
During the Senate's Report stage on April 6, 2017, the twelfth report of the Banking, Trade and Commerce Committee concerning Bill S-224, An Act respecting payments made under construction contracts, was presented with amendments, and the debate on its adoption was adjourned.
This artifact is a record of proceedings from the Senate of Canada on April 6, 2017. The Senate was in its Report stage, considering Bill S-224, An Act respecting payments made under construction contracts. This specific record documents the debate and procedural steps taken during the consideration of the committee's report on the bill. The record includes various other Senate business such as Senators' Statements, Routine Proceedings, Question Period, and the continuation of debates on other bills. The specific proceedings related to Bill S-224 involved the presentation of the twelfth report from the Standing Senate Committee on Banking, Trade and Commerce, which contained amendments to the bill. Senator David Tkachuk presented these amendments and explained each one. The debate on the adoption of this report was then adjourned.
Bill S-224 completed its third reading in the Senate on May 4, 2017, and is now awaiting first reading in the House of Commons.
On May 4, 2017, Bill S-224 completed its third reading in the Senate. This stage is the final stage a bill goes through in the Senate before it can be sent to the House of Commons. The bill is now awaiting its first reading in the House of Commons. The provided text outlines the bill's legislative journey through the Senate, including its first and second readings, committee review, report stage, and finally, third reading. It also notes key speeches made during the second reading of the bill.
The Senate convened on May 4, 2017, for a sitting that included Royal Assent, Question Period, a Committee of the Whole hearing for a Public Service Commission appointment, and third reading debates on bills related to drug control, prompt payment in construction, and second reading debates on national security oversight and park management, alongside other procedural business.
On May 4, 2017, the Senate met. The sitting included Royal Assent for two bills, statements by senators on various topics including International Day of La Francophonie and World Ovarian Cancer Day, and routine proceedings. The Senate also held Question Period on topics such as the softwood lumber crisis, international development funding, and penalties for illegal marijuana sales. A significant portion of the sitting was dedicated to a Committee of the Whole to hear from Patrick Borbey regarding his appointment as President of the Public Service Commission. Debates continued on the Ethics and Conflict of Interest for Senators report, and third reading debates occurred for Bill C-37 (Controlled Drugs and Substances Act amendments) and Bill S-224 (Canada Prompt Payment Act). Second reading debates occurred for Bill C-18 (Rouge National Urban Park Act amendments) and Bill C-22 (National Security and Intelligence Committee of Parliamentarians). Motions were adopted regarding the appointment of the President of the Public Service Commission, affecting Question Period timing, and adjournment. Other motions authorized committees to study specific bill subject matters and extend reporting dates. The sitting concluded with the Senate adjourning.
Bill S-224, concerning payments under construction contracts, is awaiting its first reading in the House of Commons after having completed all Senate stages.
This artifact indicates that Bill S-224, an Act respecting payments made under construction contracts, has reached the House of Commons but has not yet had its first reading. The bill has already passed through various stages in the Senate, including first, second, and third readings, consideration in committee, and report stage, with its latest activity being third reading on May 4, 2017. However, in the House of Commons, the stage is marked as 'Not reached'.
The House of Commons Second Reading stage for Bill S-224 has not yet been reached, as the bill is awaiting its first reading in the House, despite having completed its process in the Senate.
This artifact describes the House of Commons Second Reading stage for Bill S-224, an Act respecting payments made under construction contracts. According to the provided information, this stage has not yet been reached. It indicates that the bill, which originated in the Senate, is awaiting its first reading in the House of Commons. The artifact lists key past activities, including its first reading in the House on Wednesday, April 13, 2016, and several dates where major speeches were made during the second reading in the Senate (Tuesday, June 7, 2016, and October 26-27, November 2, and November 28, 2016). It also notes committee consideration, report stage, and third reading in the Senate, all occurring before the bill's current status of awaiting first reading in the House of Commons. The artifact also lists the sponsor's speech and a response speech from the Senate.
Bill S-224, concerning payments under construction contracts, has progressed through the Senate and is awaiting first reading in the House of Commons, where committee consideration has not yet occurred.
This artifact describes the legislative process for Bill S-224 in the House of Commons. The bill, which is about payments under construction contracts, has moved through several stages in the Senate and is now awaiting its first reading in the House of Commons. The 'Consideration in committee' stage in the House of Commons has not yet been reached.
The Report stage for Bill S-224 in the House of Commons has not yet occurred, and the bill is awaiting its first reading in that chamber.
This artifact indicates that the Report stage for Bill S-224, an Act respecting payments made under construction contracts, has not yet been reached in the House of Commons. The bill has moved through its first and second readings and consideration in committee. It has also completed report stage and third reading in the Senate and is currently awaiting its first reading in the House of Commons. The provided text details the dates of these previous procedural steps but does not contain information about the discussions or decisions made during the House of Commons Report stage itself, as it has not occurred.
Bill S-224, An Act respecting payments made under construction contracts, has a 'Third reading' stage in the House of Commons marked as 'Not reached', indicating this procedural step has not yet taken place there.
This record indicates that Bill S-224, concerning payments under construction contracts, has reached the 'Third reading' stage in the House of Commons. However, the status 'Not reached' for this stage suggests that this specific procedural step has not yet occurred in the House of Commons. The bill was previously at the Senate for its third reading on May 4, 2017.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
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