Multiple contractors who have recently completed work for Nova Scotia Power have not received payment for months, with some outstanding bills reaching hundreds of thousands of dollars, as per CBC’s findings. Tim Houtsma, CEO of Marid Industries, stated that they are owed between $60,000 to $70,000 by the utility. Houtsma emphasized the importance of timely payments, noting that contractors rely on receiving payments to sustain their businesses.
Numerous other contractors, who chose to remain anonymous, revealed to CBC that they have not been paid by Nova Scotia Power since the spring, with some reporting debts in the hundreds of thousands of dollars. This payment issue stems from a cybersecurity incident that the utility disclosed on April 28, affecting approximately 280,000 customers. Nova Scotia Power confirmed that the breach has also impacted payments to contractors.
Jacqueline Foster, senior communications adviser for Nova Scotia Power, expressed apologies for the payment delays to contractors and suppliers, citing ongoing efforts to resolve the issue. The utility assured that all outstanding invoices will be settled before the year’s end, aiming to return to normal payment schedules. Contractors seeking information on their invoices can contact their designated Nova Scotia Power representative or email apinquiry@nspower.ca.
Amidst the payment challenges, Houtsma of Marid Industries remained relatively calm about the owed funds, but he acknowledged the potential financial strain on smaller companies with larger outstanding balances. He highlighted the significance of prompt payment legislation, which has yet to be fully implemented in Nova Scotia, as a potential solution to such payment delays.
Duncan Williams, president of the Construction Association of Nova Scotia, explained that prompt payment legislation sets clear payment timelines and responsibilities within construction contracts, emphasizing the need for timely responses to invoices. Williams advocated for the swift implementation of this legislation to prevent business disruptions caused by delayed payments, citing examples of companies facing closure due to non-payment issues.
Williams also mentioned that aligning Nova Scotia’s payment standards with other provinces, such as Saskatchewan, could improve the overall payment process for contractors. He was unaware of Nova Scotia Power’s payment troubles until contacted by CBC, stressing the importance of honoring financial commitments in the construction industry for maintaining healthy business relationships.
In conclusion, the issue of delayed payments to contractors by Nova Scotia Power underscores the necessity for prompt payment legislation to safeguard contractors’ financial stability and ensure timely payments in the construction sector.