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ARTICLE · 12 FEBRUARY 2021

New Prompt Payment and Construction Lien Act Coming Into Force

Scott Venturo Rudakoff LLP
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Bill 37, The Builders' Lien (Prompt Payment) Amendment Act, 2020 revitalizes and modernizes the Alberta's Builders' Lien Act renaming it the Prompt Payment and Construction Lien Act (the "Act").

CanadaReal Estate and Construction
Paul Grewal
Paul Grewal
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Bill 37, The Builders' Lien (Prompt Payment) Amendment Act, 2020 revitalizes and modernizes the Alberta's Builders' Lien Act renaming it the Prompt Payment and Construction Lien Act  (the "Act").  The new Act prescribes timelines and mandatory rules for payments and liens in all construction industry sectors, including Condominiums, to ensure contractors and subcontractors are paid promptly.  Bill 37 received royal assent on December 9, 2020 and will likely come into force in or around July 2021 ("Proclamation"). 

WILL THIS AFFECT CURRENT CONSTRUCTION CONTRACTS?

All contracts entered into between now and the date of Proclamation will continue to be governed by the current Alberta's Builders' Lien Act. Any contract that is entered into after Proclamation, if and when that occurs, will be governed under the new Act. 

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