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ARTICLE · 10 NOVEMBER 2020

Prompt Payment In Alberta: One Big Step Closer

Field Law
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On October 21, 2020, Bill 37: Builders' Lien (Prompt Payment) Amendment Act, 2020 passed First Reading in the Alberta Legislature.

CanadaReal Estate and Construction
Anthony Burden
Anthony Burden
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On October 21, 2020, Bill 37: Builders' Lien (Prompt Payment) Amendment Act, 2020 passed First Reading in the Alberta Legislature. Bill 37 would introduce significant changes to the Alberta Builders' Lien Act, particularly by introducing statutory deadlines on payments in the construction chain, known commonly as "prompt payment", and by establishing an "adjudication" mechanism to deal with disputes during the life of a project.

Background to Prompt Payment

The concept of prompt payment is not new. It has been in place in the UK for many years. Elsewhere in Canada, it was first introduced in Ontario via amendments to their Construction Act. Several other provinces have either tabled or passed legislation on prompt payment, or are in the process of doing so.

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