Construction Law Reform: Prompt payment, adjudication, and modernization

Alberta Builders' Lien Act - Bill 37

Key Impacts of Alberta's Prompt Payment and Construction Lien Act

The legislated changes embodied in the new prompt payment legislation are sweeping, and will impact all sectors of the construction industry in Alberta. Fundamental changes include:

  • The use of proper invoices to be issued every 31 days with strict payment times lines;

  • Obligations to notify parties of non-payment within 14 days using pre-set forms;

  • Provide transparency with respect to the status of invoicing and payment;

  • Mandatory partial payment of undisputed portions of invoices; 

  • Increased lien periods from 45 days to 60 days and 90 days or the concrete supply sector;

  • Mandatory annual progressive release of holdback on projects in value in excess of $10M;

  • Implementation of adjudication as a new process to speed up dispute resolution mandatory in the event of non-payment or disputes about payment, including change orders;

  • Rules for Nominating Authorities and adjudicators; and

  • The ability to stop work in the event of non-payment following a successful adjudication;​

 

In our Building Brief articles we continually summarize the most noteworthy updates you need to be aware of. Gowling WLG has already analyzed many of the key reforms implemented in Ontario, some of which are now being considered in Alberta.

Where can I get a copy of the act?

View a consolidated copy of the Prompt Payment and Construction Lien Act as well as the required Forms on the Legislative Assembly of Alberta website.

View the consolidated act

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