Prompt payment legislation has been in force in the United
Kingdom for almost 30 years. Notwithstanding its reported
effectiveness overseas, it has been slow to gain traction in
Canada. In July 2018, Ontario enacted the "modernization"
of its Lien Act, and on October 1, 2019, prompt
payment legislation came into effect in that province. Prompt
payment legislation is also awaiting proclamation in
Saskatchewan.
In Alberta, the introduction of prompt payment legislation
through a private member's bill in 2015 has been the subject of
significant industry interest but less than prompt progress in our
legislature. The legislature does seem to be lurching ahead with
prompt payment legislation, and on October 21, 2020, Bill 37,
the Builders' Lien (Prompt Payment) Amendment
Act, 2020 (hereafter "the Act")
passed First Reading and on December 9, 2020,
Bill 37 received Royal Assent. No one seems to be sure when
the Act will come into force, but, in the
interim, contractors
