Toronto, Ontario, March 19, 2014 -- Association of Municipalities of Ontario (AMO) President Russ Powers is urging the Ontario Legislature’s Standing Committee on Regulations and Private Bills to rethink Bill 69, The Prompt Payment Act, 2013.
“Our residents expect prompt payment of contractors to be balanced with the need to ensure that work is done correctly,” said Powers. “Quality control, due diligence and professional inspections ensures that public dollars are spent wisely and that public safety is protected”.
“Municipal governments pay their bills in a professional manner – once they know the work is properly done. That shouldn’t change”.
AMO is concerned that this Bill will create unnecessary risks and costs, for tax payers, by promoting work stoppages, driving up municipal insurance premiums and forcing disputes into litigation.
Be particularly problematic for large infrastructure projects, with complex funding arrangements.
As currently written, the Bill would limit a homeowner’s ability to ensure work was performed to standard, let alone restrict a municipal government’s ability to ensure that large scale construction projects meet with quality control and safety standards.
AMO believes that Bill 69 should be withdrawn to allow for appropriate consultation with affected stakeholders.