Since 2017, industry in the territory has been requesting the Builders Lien Act, an update to the 1988 Mechanics Lien Act, be moved forward in the legislative assembly.

Though it was to be introduced in late 2021, the GNWT has opted to push this important piece of legislation off for yet another year.

“Prompt payment” legislation has been introduced and passed over the last few years by provincial governments in Ontario, Nova Scotia, Saskatchewan, British Columbia, Manitoba, New Brunswick, and Québec. Similar legislation applying to federal government construction projects also received royal assent in 2019.

Late payments can occur in every industry; however, the problem is especially damaging to small businesses in the NWT’s construction sector, who often do not have the cash reserves to float the high upfront costs of construction while they wait on overdue invoices.

Considering the direct impact to businesses the pandemic and subsequent restrictions in the territory has had these past two years, NNCA feels this legislation will improve the bottom lines in industry and support the GNWT’s commitment to stabilizing the economy of the territory.

The Association continues to push for this important Act to be introduced in the legislative assembly.

HIGHLIGHTS OF “WHAT WE HEARD” – Results of the Public and Stakeholder Engagement on
A Proposed Builders Lien Act for the NWT
| March 2021
Liens in the North: How It Could Affect You | November 2020
A Proposed Builders Lien Act for the Northwest Territories: Consultation Paper | June 2020
Builders call for prompt payment law | February 2020

BC Government Takes Action Toward Prompt Payment Legislation, Establishes Industry Working Group as Next Step | January 2022
Ontario Dispute Adjudication for Construction Contracts (ODACC) | December 2021
New Legislation Will Protect Contractors from Payment Delays | October 2020 (Sask)