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ARTICLE · 08 JULY 2024

Construction Deadline Approaching: Two-Year-Old Contracts Must Adapt To New Act

Scott Venturo Rudakoff LLP
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Alberta's Builders' Lien legislation has recently changed and been renamed to the Prompt Payment and Construction Lien Act (the "Act").

CanadaReal Estate and Construction
Billy Cowitz
Billy Cowitz
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Alberta's Builders' Lien legislation has recently changed and been renamed to the Prompt Payment and Construction Lien Act (the "Act"). The new Act came into force on August 29, 2022 and prescribes timelines and mandatory rules for payments and liens in all construction industry sectors to ensure contractors and subcontractors are paid promptly.

All contracts entered into on or after August 29, 2022 are governed by the new Act. Additionally, any contracts entered into prior to August 29, 2022 that are scheduled to remain in effect for longer than two years after August 29, 2022, must be amended to comply with the new Act within the two-year period (i.e. August 28, 2024).

Of particular interest at this time is the upcoming deadline to amend existing contracts that will change over to being governed by the new Act. This article summarizes the key changes that construction contracts will need to ensure are included.

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