Alberta Court Clarifies Entitlement To Public Works Act Payments In Recent Ruling

Introduction

When multiple parties contribute to a public construction project, but not all get paid, which of these parties has the legal right to claim unpaid funds? This question recently came before the Alberta Court of King's Bench in a rare and significant decision interpreting the Public Works Act, RSA 2000, c P-46 (the "PWA").

In Alberta Social Housing Corporation v Dawson Wallace Construction Ltd., the Court allowed the appeal of a General Contractor and dismissed the competing claims of two "Subsubcontractors." The decision is noteworthy as there is minimal judicial interpretation of the PWA, and it specifically bars submitted PWA claims of subsubcontractors on the basis of a strict interpretation of Section 14 of the PWA, which only refers to "contractors" and "subcontractors."