Ensure prompt payment of contractors and sub-contractors.

What success looks like

Barriers to accessing government contracts are reduced and small and medium enterprises require less working capital (cash flow) to do business with the Government of Canada because they get paid more quickly for work they've done.

Government's narrative on progress

The government is looking at different approaches to ensure expedited payment to its suppliers. Public Services and Procurement Canada launched a pilot in one of its branches to pay contracts under $100,000 within 15 calendar days. Pilot results will confirm if this measure is effective in removing barriers related to cash flow for small and medium enterprises in doing business with the government. Independent experts concluded a national engagement process seeking input from the construction industry to identify the elements required to develop a robust federal prompt payment regime. In Budget 2019, the government proposed to introduce legislation that would ensure that payments flow down the construction supply chain promptly and to provide for an effective adjudicative mechanism when they do not, thus facilitating the orderly and timely building of federal construction projects on federal property.

Note: this is the government's own description, not an independent assessment.