Guide to Saskatchewan Government Contractor Payment Terms

If your business supplies goods or services to the Government of Saskatchewan, understanding when you will be paid is key to managing cash flow. While public contracts can offer steady, reliable work, supplier payment timelines for Canadian provinces follow different rules, and Saskatchewan’s approach is outlined in its Financial Administration Manual. This guide explains those timelines, common reasons for delays, and ways to keep your payments on track.

Typical Payment Terms for Government Contractors in Saskatchewan

Saskatchewan’s supplier payment process is outlined in the Financial Administration Manual – Section 3150: Timing of Supplier Payments, which applies to ministries, agencies, and certain Crown corporations. The manual sets clear expectations for when vendors should receive payment after submitting a proper invoice.

• 30-Day Standard for Most Payments: Ministries and agencies are expected to issue payment within thirty days of receiving a valid invoice or the goods and services, whichever is later.
• Exceptions for Contract Terms: Some contracts may specify different payment timelines, which override the general 30-day standard.
• Prompt Processing Requirement: Departments are directed to review, approve, and forward invoices for payment without delay to meet the required timelines.

Interest on overdue payments is not applied automatically. If you want to charge interest, it must be included in your contract with a clearly defined rate and conditions.

Because timelines can vary based on the contracting entity and specific agreement, reviewing your payment terms before work begins is essential.

Common Reasons for Saskatchewan Government Contract Payment Delays

Even with clear policies in place, such as the 30-day standard, payments can still be delayed for a variety of reasons.

Policy Complexity and Oversight Layers

Saskatchewan’s Financial Administration Manual—Section 3150 outlines a 30-day payment timeline, but payments must be processed through a central financial system that records both the date an invoice is received and when goods or services are fulfilled. Delays can occur due to administrative processing or misentered information.

Exceptions and Special Contract Terms

While 30-day payment is the norm, certain contracts, such as those with special clauses or progress billing, can set different timelines, extending the actual payment schedule.

Prompt Payment Rules in Construction

As of March 1, 2022, Saskatchewan’s Builders’ Lien (Prompt Payment) Amendment Act applies to eligible public construction contracts. It creates a 28-day payment deadline for proper invoices and includes an adjudication process and defined dispute stages. Payment delays can result if proper notice or documentation isn’t submitted promptly.

Late Payment Interest and Administrative Requirements

If a payment is delayed beyond the 30-day policy, specifically over 45 days from receipt or fulfillment, interest can be charged. However, ministries must document reasons for delay and notify the Financial Systems Branch accordingly

How to Get Paid Faster on Government Contracts in Saskatchewan

While you cannot control every step of the payment process, you can take practical steps to help ensure your invoices are approved and paid on time.

Confirm Payment Terms in Writing

Verify whether the 30-day standard applies to your contract or if a different schedule has been negotiated.

Know the Rules for Construction Contracts

If your work is covered by the Builders’ Lien (Prompt Payment) Amendment Act, submit proper invoices that meet the legislation’s requirements to avoid delays.

Follow Submission Procedures Exactly

Use the correct portal, email, or mailing address, and ensure invoices go to the right contact person.

Include purchase order numbers, delivery confirmations, acceptance forms, and any other required records with each invoice.

Check for Accuracy Before Sending

Make sure all descriptions, quantities, and prices match your contract or purchase order.

Track and Follow Up

Confirm receipt of your invoice and check in before the due date to address any potential issues early.

Factoring Invoices for Saskatchewan Government Contractors

Even when payment timelines are clear, waiting 30 days or more can strain your cash flow. Leveraging factoring for government contractors lets you turn approved invoices into working capital within days, so you can pay staff, purchase materials, and take on more contracts without waiting for the government’s payment cycle to finish.

How Factoring Works for Government Contractors in Saskatchewan

With accounts receivable factoring, you sell your approved invoice to a factoring company. The factor advances most of the value, usually within one to two business days, and collects payment from the government when it is due. Since provincial ministries and agencies are considered reliable payers, approvals for factoring are usually quick and easy.

Benefits of Factoring for Saskatchewan Contractors

• Faster Access to Working Capital: Receive funds in days rather than weeks.
• Simplified Qualification: Factors are more concerned about the government’s creditworthiness than yours, which makes it easier for new or growing businesses to qualify.
• Flexible Options: Choose spot factoring to factor individual invoices or set up ongoing funding for multiple contracts.
• Steady Cash Flow for Growth: Keep projects on track and pursue new opportunities without payment delays holding you back.
• No Debt: Factoring provides funding without creating debt.

Types of Saskatchewan Government Contractors That Leverage Factoring

Many industries leverage invoice factoring to accelerate payments from government contracts. We’ll explore a few below.

• Construction and Infrastructure Firms: Highway, municipal, and public facility projects often lead companies to use specialised factoring for construction companies to maintain steady cash flow.

• Transportation and Logistics Providers: Delivering goods and equipment for government contracts can tie up capital, which makes factoring for trucking companies a practical choice.
• Healthcare Staffing Agencies and Suppliers: Providing personnel or equipment to hospitals, clinics, and care facilities often involves long payment cycles, which healthcare factoring solutions help bridge.
• Facilities Management and Janitorial Services: Cleaning, maintenance, and landscaping for public buildings can benefit from factoring for janitorial service companies.
• Security and Protective Services: Guarding provincial offices, courthouses, and events requires steady payroll funding, which makes factoring for security guard companies indispensable.
• Technology and IT Service Providers: Supplying software, hardware, or technical support to public agencies can create cash flow gaps that tailored factoring for technology companies helps cover.
• Consulting and Professional Services Firms: Engineers, planners, and other professionals engaged in public contracts often turn to factoring solutions for consultants to keep operations smooth.

Accelerate Your Saskatchewan Government Contractor Payments with Factoring

If 30-day payment terms still leave you waiting too long to access your money, factoring can deliver most of your invoice value in just a few days. With quick approvals and flexible terms, it’s an effective way to keep your operations funded and your projects on schedule. To explore the fit, request a free rate quote.

Editor’s Note: Please note that every effort has been made to ensure the accuracy of the information provided, and links to policies are included for your reference. However, contract terms are set by individual jurisdictions and are subject to change. Be sure to check with relevant regulatory bodies and your contract as needed.

FAQs on Saskatchewan Government Contract Payment Terms