Bill 37 Prompt Payment Legislation: The Unclear Adjudication Process

The Alberta Government has promised to enact the new Prompt Payment Amendment Act, often referred to as "Bill 37", in July 2021. One of the major changes introduced in Bill 37 is the implementation of an adjudication system to resolve payment disputes.

What We Know

The current version of Bill 37 lacks detail with respect to what the adjudication process will look like. Here is what we know.

The Minister of Service Alberta will appoint "Authorized Nominating Authorities" who will be able to assign third party adjudicators to disputes.

Although the adjudications are intended to be a final and binding process, the parties to the adjudication process will still have the option to register a builders' lien and enforce the lien through the Court process.