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ARTICLE · 01 JUNE 2023

PPCLA Transition Periods: What This Means For The Construction Industry

Borden Ladner Gervais LLP
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The Prompt Payment and Construction Lien Act (the PPCLA) is now law in Alberta. In addition to creating uncertainty around prompt payment, invoicing and adjudication...

CanadaReal Estate and Construction
Patricia L. Morrison
Patricia L. Morrison
Bill Woodhead
Bill Woodhead
Erin Cutts
Erin Cutts
Peter D. Banks
Peter D. Banks
Marin Leci
Marin Leci
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The Prompt Payment and Construction Lien Act (the PPCLA) is now law in Alberta. In addition to creating uncertainty around prompt payment, invoicing and adjudication, the PPCLA's transition provisions are likely to generate uncertainty in the construction industry.

The PPCLA and associated regulations contain rules that govern the transition from the former Builders' Lien Act (the BLA) to the PPCLA. Sections 74(1)(2) and (3) of the PPCLA provide that:

  • The PPCLA applies to any contract or subcontract entered into on or after Aug. 29, 2022, which is the date when the PPCLA came into force in Alberta; and
  • contracts that were executed before Aug. 29, 2022, must be amended to comply with the PPCLA within two years, if they are still in progress at that time.

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