An Overview Of Alberta's Prompt Payment And Construction Lien Act

Overview

On August 29, 2022, the changes to the Alberta Builders' Lien Act will take effect, making Alberta the third province in Canada to implement prompt payment and adjudication in its lien legislation. The new act will be called the Prompt Payment and Construction Lien Act (the PPCLA or the Act). The PPCLA introduces a number of key changes, including:

• prompt payment timelines and requirements, triggered by the receipt of a "proper invoice" by the owner, which must be followed unless required notices are delivered by the stipulated deadlines;
• a new dispute adjudication process, under which adjudicators may hear disputes and render decisions, which may be binding in certain circumstances;