Construction Law Reform: Prompt payment, adjudication, and modernization

Construction law reform is coming to Alberta in 2022.

The Government of Alberta has passed the Prompt Payment and Construction Lien Act and supporting Regulations, which replace the current Builders' Lien Act, and will come into effect on August 29, 2022. The framework establishes strict timelines and rules for payments, revises some key aspects of the existing lien legislation and creates a new adjudication framework for payment disputes within the construction industry.

Learn more about Alberta's construction law reforms

These changes could have a profound impact on Alberta's construction industry. From payment due dates, holdback requirements, and lien periods, to fast-track adjudication as an alternative dispute process during the life of the contract, the reforms have the potential to change the way those in the construction do business.

The Gowling WLG Construction & Engineering team has been actively involved in the development of this legislation, firstly in Ontario, and now in Alberta as Counsel to a key industry stakeholder group. This first-hand active involvement has enabled us to be exceptionally informed not of the legislation but the rationale behind the changes.

We can help you get informed and prepare

We have a great deal of thought leadership content and held more than two dozen complimentary webinars to clients, industry associations, and contracts in a concerted effort to inform the industry on a wide variety of matters relating to the reforms.

In concert with our webinar series, we have developed an exhaustive list of FAQs resulting from our dialogue with the industry (as attached). Watch for our publication of further FAQs as we answer and track more questions during our ongoing client and industry webinar.

We will continue these efforts as key dates approach relying in part on our collective experience from working with our clients on issues related to Ontario's prompt payment legislation.

We are ready to help you prepare for these important legislated changes. Contact a member of our Construction and Engineering team today.