Multiple contractors who have recently completed work for Nova Scotia Power have reported not receiving payment for several months, with outstanding bills ranging from tens of thousands to hundreds of thousands of dollars, according to information obtained by CBC.
Tim Houtsma, the CEO of Marid Industries, stated that his company is owed approximately $60,000 to $70,000. Houtsma emphasized the importance of holding Nova Scotia Power accountable for timely payments, highlighting that contractors rely on prompt payment just as customers pay their power bills on time.
Several other contractors, who chose to remain anonymous, revealed to CBC that they have not been compensated by Nova Scotia Power since the spring, with debts reaching significant amounts.
The utility disclosed a cybersecurity incident on April 25, affecting around 280,000 customers, and publicly acknowledged the breach on April 28. Nova Scotia Power confirmed that the breach also impacted payments to the companies working for them.
Jacqueline Foster, a senior communications adviser for Nova Scotia Power, expressed regret over the payment delays to contractors and suppliers, noting that efforts are underway to address the issue and ensure timely payments. The utility assured that it aims to settle all outstanding invoices before the end of the year and resume normal payment timelines.
Regarding the overdue payments, Houtsma acknowledged that while the owed amount is not a major concern for his company, he empathizes with smaller businesses facing more significant financial strains.
Additionally, the delay in payment highlights the need for prompt payment legislation in Nova Scotia, which has been under discussion since an amendment to the Builders’ Lien Act in 2019. Duncan Williams, the president of the Construction Association of Nova Scotia, emphasized the importance of establishing clear payment guidelines to protect contractors and suppliers in such situations.
Williams stressed that delayed payments can have severe consequences for businesses, potentially leading to closures. He advocated for aligning Nova Scotia’s standards with other provinces to ensure fair and timely payments.
He expressed hope that the prompt payment legislation will be finalized in the upcoming legislative session, emphasizing the critical role of timely payments in sustaining the construction industry.
For any inquiries about invoice statuses, contractors were advised to contact their designated Nova Scotia Power representative or email apinquiry@nspower.ca.
The implementation of prompt payment legislation is seen as a crucial step towards ensuring that contractors and suppliers are paid promptly, fostering a more stable and reliable construction industry in Nova Scotia.