Multiple contractors who have recently worked for Nova Scotia Power are facing payment delays, with some being owed significant amounts, according to information obtained by CBC. Tim Houtsma, CEO of Marid Industries, mentioned that his company is owed between $60,000 to $70,000, speculating that the delay in payments is linked to a data breach incident. While expressing concern, Houtsma emphasized the importance of holding Nova Scotia Power accountable for timely payments, highlighting that contractors rely on prompt payments just as customers pay their bills on time.
Several other contractors, who chose not to speak publicly, revealed to CBC that they have not received payments from Nova Scotia Power since the spring, with outstanding amounts reaching hundreds of thousands of dollars. The utility publicly disclosed a cybersecurity incident on April 28 that impacted around 280,000 customers. Nova Scotia Power acknowledged the breach has also affected payments to companies they engage with for services.
Jacqueline Foster, senior communications adviser for Nova Scotia Power, expressed regret over the payment delays to contractors and suppliers, assuring progress in clearing outstanding invoices. The utility stated that efforts are underway to resolve payment issues swiftly as they work on restoring systems following the cyber incident. Foster assured that all invoices are expected to be settled by the end of the year, allowing for a return to regular payment schedules.
Regarding the delayed payments, Duncan Williams, president of the Construction Association of Nova Scotia, highlighted the potential benefits of prompt payment legislation, which is currently in progress in the legislative process. The legislation aims to establish clear guidelines for timely payments in construction contracts, ensuring that invoices trigger prompt responses from involved parties. Williams emphasized the necessity of such regulations to prevent financial strains on contractors and suppliers, advocating for alignment with payment standards in other provinces.
Williams recognized the challenges faced by contractors due to extended payment terms, noting that delayed payments can lead to severe consequences, including business closures. He emphasized the need for prompt payment regulations to safeguard contractors from financial instability caused by payment delays. Williams stressed the importance of paying bills promptly to maintain trust and ensure quality services in the construction industry.
In conclusion, the efforts to address payment delays and introduce prompt payment legislation reflect the ongoing challenges faced by contractors in Nova Scotia. Implementing timely payment practices is crucial to sustaining a healthy business environment and fostering positive relationships between contractors and clients.
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