Alberta Builders' Lien Act Proposed Amendments Significantly Rewritten

Significant changes have been made to the prompt payment sections of Alberta's Bill 37.

The Builders' Lien (Prompt Payment) Amendment Act, 2020 passed second reading on Oct. 28, 2020. A few days later, on November 4, a motion to amend Bill 37 (known as Amendment A1) was carried, resulting in changes to the bill's prompt payment sections.

The revised prompt payment sections now mirror the prompt payment language contained in Ontario's Construction Act, and incorporate a cascading payment process once payment is made by the owner to the general contractor. This is a radical change from the initial proposal, which required all parties to be paid within 28 days of the issuance of a proper invoice, regardless of whether payment was made to the tier above.