Prompt Payment Survey Results are in!
Based on responses to the Alberta Trade Contractors Coalition 2015 survey of members, delayed payment practices are a significant and growing financial burden for Alberta’s trade contractors. In 2014 the average number of days in accounts receivable was 78.60 days and the average amount outstanding for accounts 60 days or more overdue was $233,819.92. With over 3,000 trade contractors in the province it can be estimated that trade contractors are, at any given time, financing construction projects for between $700,000 and $1 billion.
The uncertainty around when payment will be received and the lack of legal support for the timely collection of overdue accounts is a heavy financial burden for trade contractors. A burden which reaches beyond their own business and drives construction cost higher, reduces competition, renewal (apprenticeship) and innovation.
Thank you to all the members who took the time required to participate in the survey. The ATCC members will be delivering the survey to Premier Notley and other Ministers with a request to find a legislated solution that will provide trade contractor with protected legal rights to collect overdue accounts.
If you would like to participate in our efforts or have any questions or comments please contact your association office.
Prompt Payment Survey HERE