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ARTICLE · 04 MAY 2021

Alberta Builders' Lien Act Update – Red Tape Reduction Implementation Act (Bill 62)

Borden Ladner Gervais LLP
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In BLG's October 23, 2020 and November 4, 2020 articles, we discussed Bill 37, the Builders' Lien (Prompt Payment) Amendment Act, 2020 and its proposed amendments to the Alberta Builders' Lien Act...

CanadaReal Estate and Construction
Rodney A. Smith
Rodney A. Smith
Patricia L. Morrison
Patricia L. Morrison
Marin Leci
Marin Leci
Bill Woodhead
Bill Woodhead
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Background

In BLG's October 23, 2020 and November 4, 2020 articles, we discussed Bill 37, the Builders' Lien (Prompt Payment) Amendment Act, 2020 and its proposed amendments to the Alberta Builders' Lien Act (the Prompt Payment Amendment). In addition to changing the name of the Alberta Builders' Lien Act to the Prompt Payment and Construction Lien Act (the PPCLA), the Prompt Payment Amendment also contains new rules and adjudication procedures that will have a transformative impact on the construction industry in Alberta. The PPCLA is anticipated to come into force on July 21, 2021, although the regulations have not yet been released.

On April 8, 2021, Bill 62, the Red Tape Reduction Implementation Act (Bill 62) received its first reading in the Alberta legislature. Bill 62 contains important information and guidance on the adjudication provisions in the Prompt Payment Amendment, a key feature of the PPCLA. Most critically, Bill 62:

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