The Public Works Act ("PWA") is a helpful, rarely
litigated piece of legislation for unpaid subcontractors. By
submitting a PWA claim to the Provincial Government, a
subcontractor has the ability to seek compensation outside of its
contractual rights from the party it contracted with on public
projects that otherwise may not be lienable. This is particularly
useful in a scenario where one party in the contractual chain
becomes insolvent, leaving unpaid sub-subcontractors behind.
Public Works Act claims are Priority Claims in
Bankruptcy Proceedings
Whether PWA claims are considered priority claims in the event
of a bankruptcy proposal was recently considered by the Court in Graham Construction and Engineering Inc v Alberta
(Minister of Infrastructure), 2019 ABQB 543.
