A First Look At Alberta's Proposed Prompt Payment Legislation

Last week the Government of Alberta introduced Bill 37, which proposes new rules relating to issues such as builders' liens, payment terms, invoicing, and dispute resolution in the construction industry. Below, we highlight the key changes that are proposed in Bill 37.

Payment & Invoicing

Bill 37 is intended to implement a regime providing prompt payment for construction work performed in Alberta. In this regard, Bill 37 introduces new deadlines for payment of invoices and new restrictions on payment terms in construction contracts. The key changes relating to payment and invoicing are as follows: 

1. Owners, contractors and subcontractors will be required to pay "proper invoices" within 28 days after receipt.