Multiple contractors who recently completed projects for Nova Scotia Power are facing payment delays, with some owed hundreds of thousands of dollars, according to information obtained by CBC. Tim Houtsma, CEO of Marid Industries, revealed that his company is owed between $60,000 and $70,000 due to the payment delays. Other contractors, who chose to remain anonymous, stated they have not received payments from Nova Scotia Power since the spring and are owed significant amounts.
The payment delays are linked to a cybersecurity incident that Nova Scotia Power publicly disclosed on April 28. The breach, discovered on April 25, impacted around 280,000 customers, or roughly half of the utility’s total customer base. Nova Scotia Power acknowledged that the breach has affected their ability to make timely payments to contractors and suppliers.
Jacqueline Foster, a senior communications adviser for Nova Scotia Power, expressed regret over the payment delays and assured that progress is being made to settle outstanding invoices. The utility emphasized that their IT and finance teams are working diligently to restore systems post-cyber incident and anticipates clearing all invoices before the year-end.
Despite not being overly concerned about the amount owed to Marid, Houtsma empathized with smaller businesses facing more substantial payment delays. He highlighted the importance of timely payments to prevent potential business risks for contractors.
Duncan Williams, president of the Construction Association of Nova Scotia, discussed the significance of prompt payment legislation, which could address payment delays in the construction industry. The legislation, still pending implementation in Nova Scotia, aims to establish clear rights and responsibilities for all parties involved in construction contracts to ensure prompt responses to invoices.
Williams emphasized the urgent need for prompt payment regulations, citing instances where prolonged payment terms have led to financial strains for contractors. He underscored the impact of delayed payments on businesses, noting that approximately 35 companies close annually due to non-payment issues.
Williams hopes that Nova Scotia will align its payment standards with provinces like Saskatchewan, emphasizing the importance of mutual trust and timely payments between parties in construction contracts. He was unaware of Nova Scotia Power’s payment challenges until contacted by CBC, highlighting the universal importance of prompt payments in business relationships.