Alberta Ruling: Sub-subcontractors Not Entitled To Crown-held Funds Under Public Works Act

In the recent Alberta Court of Kings Bench decision, Alberta Social Housing Corporation v Dawson Wallace Construction Ltd., 2025 ABKB 124, the Court held that sub-subcontractors are not entitled to be paid from funds paid into Court by the Crown under the Public Works Act, R.S.A2000 c. P-46(PWA).

Alberta Social Housing Corporation (ASHC) retained Dawson Wallace (Dawson) as general contractor to construct a social housing project as a public work. Dawson's stucco subcontractor retained two sub-subcontractors. After the stucco subcontractor went bankrupt, the unpaid sub-subcontractors submitted PWA claims. The Crown withheld the value of their claims from Dawson and paid the amount withheld into Court under section 15(4) of the PWA. In a Court application to determine entitlement to those funds, the applications judge held there was too little evidence to determine which claimant was owed the monies. All parties appealed that decision.