Past due!.That’s what to many bills the federal government owe say, despite the fact they have promised quick settlement of monies owing, says Blacklock’s Reporter..Procurement Ombudsman Alexander Jeglic said there were even cases reviewed in which contractors had to wait for months to be paid..“For smaller companies, delays in payments can represent a significant hardship as they may not have cash reserves on hand to tide themselves over or pay subcontractors until payment is received,” Jeglic wrote in a report Late Payments..“Delays disproportionately affect smaller companies.”.Jeglic looked at seventeen contracts issued by various departments over a two-year period. He found 93 cases of late payments. One contractor owed $16,741 waited seven months and “was unable to contact anyone” who would help..A Treasury Board Contracting Policy states federal agencies should pay their bills within thirty days with interest automatically offered a supplier on late payment..But in the cases he investigated, interest was not always automatically paid, wrote Jeglic..“Interest payments are a financial liability to the department and the Canadian taxpayer in general,” said his report..“Departments have limited budgets, and having to spend additional funds on interest may mean fewer goods and services can be procured.”.Parliament in 2019 passed an act requiring general contractors on public works to pay trades and subcontractors within 35 days. Subcontractors may also take claims to an adjudicator for binding decisions enforceable by Court order without fear of being struck from bidders’ lists..The cabinet bill followed 2017 Senate hearings on a similar private bill heard complaints of small contractors being blacklisted after attempting to collect money they were owed..“There are cases,” testified lawyer Gerald Chipeur, partner with Miller Thomson LLP of Calgary..“I can assure you it exists – it’s a real fear, and in fact, it has happened that people have suffered because they challenged a deputy minister.”.Senator Scott Tannas (Alta.) earlier told the Senate banking committee: “We had men in tears here talking about this problem. You have a giant contractor and a bunch of small contractors, and the balance of power says, ‘Would you like this contract? I’ll pay you when I feel like it,’ and you have to accept that.”.“The only folks who didn’t think there was a problem were the people in charge of paying their bills,” said Tannas..“The people who were in charge of doing the work and getting paid said there was a problem.”.Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.Twitter.com/nobby7694
Past due!.That’s what to many bills the federal government owe say, despite the fact they have promised quick settlement of monies owing, says Blacklock’s Reporter..Procurement Ombudsman Alexander Jeglic said there were even cases reviewed in which contractors had to wait for months to be paid..“For smaller companies, delays in payments can represent a significant hardship as they may not have cash reserves on hand to tide themselves over or pay subcontractors until payment is received,” Jeglic wrote in a report Late Payments..“Delays disproportionately affect smaller companies.”.Jeglic looked at seventeen contracts issued by various departments over a two-year period. He found 93 cases of late payments. One contractor owed $16,741 waited seven months and “was unable to contact anyone” who would help..A Treasury Board Contracting Policy states federal agencies should pay their bills within thirty days with interest automatically offered a supplier on late payment..But in the cases he investigated, interest was not always automatically paid, wrote Jeglic..“Interest payments are a financial liability to the department and the Canadian taxpayer in general,” said his report..“Departments have limited budgets, and having to spend additional funds on interest may mean fewer goods and services can be procured.”.Parliament in 2019 passed an act requiring general contractors on public works to pay trades and subcontractors within 35 days. Subcontractors may also take claims to an adjudicator for binding decisions enforceable by Court order without fear of being struck from bidders’ lists..The cabinet bill followed 2017 Senate hearings on a similar private bill heard complaints of small contractors being blacklisted after attempting to collect money they were owed..“There are cases,” testified lawyer Gerald Chipeur, partner with Miller Thomson LLP of Calgary..“I can assure you it exists – it’s a real fear, and in fact, it has happened that people have suffered because they challenged a deputy minister.”.Senator Scott Tannas (Alta.) earlier told the Senate banking committee: “We had men in tears here talking about this problem. You have a giant contractor and a bunch of small contractors, and the balance of power says, ‘Would you like this contract? I’ll pay you when I feel like it,’ and you have to accept that.”.“The only folks who didn’t think there was a problem were the people in charge of paying their bills,” said Tannas..“The people who were in charge of doing the work and getting paid said there was a problem.”.Dave Naylor is the News Editor of the Western Standard.dnaylor@westernstandardonline.com.Twitter.com/nobby7694
