why support general contractor liability?

General contractor liability legislation (“GC Liability”) ensures that general contractors are responsible for illegal activity on their jobsites, including wage theft, cash payments, and tax-fraud schemes carried out by subcontractors or labour brokers under their supervision. GCs are the top of the food chain on a construction job site and are the best situated group to ensure only safe, reliable, legal subcontractors perform work on their job sites.

It protects the safety of workers, makes honest contractors more competitive, and raises standards across the construction industry.

Why contractors should support it:

It levels the playing field.
GC Liability penalizes bad actors who cut corners, exploit workers, and dodge taxes, so honest contractors aren’t underbid by illegal operations.
It strengthens the subcontractor market.
By enforcing accountability, GCs gain better access to legal, compliant, and reliable subcontractors.

What gc Liability does NOT do

Does not apply to small homebuilders
Applies only to residential contractors building more than 10 units.
Does not impose penalties
Contractors are given a curing period to resolve issues before liability applies, allowing GCs to address the violation first instead of having to pay outright for illegal sub-contractor practices – there are no damages, just compensation.
Does not add costs for honest contractors
If you already pay wages and remittances properly, this legislation doesn’t increase your costs. It forces your competitors to meet the same compliance standards you already invest in and ensures that their subcontractors can’t get away with illegal cost cutting.
Does not increase insurance costs for contractors

Bonding premiums have not increased in any US states that have passed this legislation.

Why Governments Should Support It:

It cracks down on construction tax fraud.
Enforcing accountability at the top helps eliminate illegal practices on jobsites.

In 2023, the underground economy cost Canada $72.4 billion in lost tax revenue.
Residential construction accounted for nearly one-third of all activity, the largest share out of any industry.

It returns lost revenue where it belongs.
GC liability helps redirect stolen tax dollars back to governments to invest in infrastructure and public services and cleans up our construction job sites.

Why Workers Should Support It:

It raises standards across the industry.
Removing dishonest contractors means:

Fair wages paid
Proper safety measures enforced
WSIB and legal protections upheld

Good Contractors Stay. Bad Actors Don't.

Why the Public Should Support It:

Wage Theft Hurts People

Wage theft leaves the most vulnerable individuals on a job site without recourse, without pay, and without the protections of Worker Safety legislation. Injured workers sometimes find out they have no protection only after they have been injured, working in casts, with broken arms and broken legs just to support their families. Don’t let bad contractors get away with violating the rights of workers.

Wage Theft lowers the rights of all workers

The UBCJA has always stood for standing up for the rights of all workers, not just unionized workers – every time a contractor pays a worker less than minimum wage, or refuses to remit their taxes appropriately, it gets away with creating an underclass of workers and subcontractors. These subcontractors make it impossible for everyone to compete fairly. It creates a system of unfairness that hurts workers across North America.

illegal contractors are stealing from you

Construction industry tax fraud means fewer dollars for the public services Canadians rely on.

GC Liability protects public funds, ensuring tax dollars support healthcare, infrastructure, education, and other essential services. Further, it punishes contractors who operate in the underground economy, actively creating an environment for workers where exploitation is profitable and labour laws are ignored.

Tell your elected officials to introduce general contractor liability legislation to put an end to worker exploitation, protect honest contractors, and put your tax dollars back to public services.