‘Clear Gap’ Between Words and Action on New Brunswick Prompt Payment: CANB

Why It Matters

Prolonged payment delays erode the financial stability of New Brunswick’s construction sector, limiting growth and jeopardizing large‑scale infrastructure projects. Prompt enforcement is essential to sustain SMEs and maintain a competitive building industry.

Key Takeaways

• 80% of surveyed contractors still face late payments
• $165 M CAD (~$120 M USD) owed monthly to SMBs
• Implementation delayed until 2027, despite 2023 legislation
• No draft regulations released; public review slated for 2026
• Industry warns cash flow issues threaten project bids

Pulse Analysis

Prompt‑payment legislation has become a cornerstone of construction policy in six Canadian provinces and the United States since the 1980s, yet New Brunswick lags behind. The province’s 2023 Prompt Payment Act was designed to guarantee timely compensation for completed work, a move intended to protect cash‑strapped contractors and stimulate investment. However, the absence of draft regulations and a public‑review process has stalled the act’s enforcement, leaving the industry in a regulatory vacuum. This delay contrasts sharply with neighboring Nova Scotia, which has already aligned its rules with national best practices, highlighting a regional competitiveness gap.

For small and medium‑sized contractors, the financial impact is acute. CANB’s recent survey shows that 80% of respondents still experience late payments, with half reporting frequent delays. An estimated $165 million CAD—approximately $120 million USD—remains unpaid each month, constraining firms’ ability to reinvest in equipment, workforce training, or new bids. Cash‑flow constraints can force contractors to forfeit future projects, creating a ripple effect that slows overall construction activity and undermines the province’s ambitious infrastructure agenda, including initiatives like Build Canada Homes.

Industry leaders argue that the solution lies in swift regulatory action and alignment with existing provincial models. By adopting a harmonized framework, New Brunswick could reduce administrative overhead and provide clear, enforceable timelines for payment. The government’s indication that draft regulations may surface in 2026 offers a narrow window for stakeholder engagement before the projected 2027 implementation date. Prompt resolution would not only protect SMEs but also bolster confidence among investors and developers, ensuring the province’s construction sector remains a catalyst for economic growth.