On October 21, 2020, Bill 37: The Builders' Lien
(Prompt Payment) Amendment Act, 2020, (the "Prompt
Payment Act") was introduced and passed the first
reading.
If passed, significant changes will be made to Alberta's
current builders' lien regime. In addition to renaming the
Builders' Lien Act to become the Prompt Payment
and Construction Lien Act, the proposed amendments will also
establish a 28-day timeline for payment of invoices, prohibit
"pay-when-paid" clauses, extend timelines for registering
liens, allow dispute resolution through adjudication, and more.
Most notably, the proposed Prompt Payment section provides that
an owner, a contractor or a subcontractor who owes money under a
proper invoice will have to pay within 28 days of receipt. A proper
invoice will have to contain:
