Act ensuring prompt payment for contractors takes effect in Sask.

Contractors in Saskatchewan now have legislation to help them get timely compensation.

On Tuesday, the Builders’ Lien (Prompt Payment) Amendment Act, 2019 came into force.

“The Government of Saskatchewan is pleased to see changes to the Act take effect today,” Justice Minister and Attorney General Gordon Wyant said in a media release.

“The prompt payment of contractors and subcontractors, combined with an effective dispute resolution process, is imperative to ensure construction projects across the province progress without delays.”

Owners and developers now will have to pay contractors within 28 days of getting an invoice for construction services. As well, contractors will have seven days to pay subcontractors after getting money from the owner or developer.

If any disputes arise, they’ll go to the Saskatchewan Construction Dispute Resolution Office (SCDRO) instead of the courts. The SCDRO is a not-for-profit corporation designated by the minister to deal with any issues that may arise.

“These measures will better protect and define the rights and obligations of owners, developers, contractors and subcontractors,” the release said.

The legislation will apply to any contracts that are entered into after Tuesday, not to existing contracts.

Other Canadian jurisdictions such as Ontario, Nova Scotia and Alberta have similar legislation.