Alberta Prompt Payment

Overview

Transition

Timeline

Proper Invoices

Disputing Proper Invoices

Adjudication

Checklist

Contractual Updates

Overview

Transition

Any contract entered into on or after the coming into force date of the new Act (August 29, 2022) must conform to the new provisions.

Prompt Payment Timeline

The PPCLA sets out prompt payment timelines that owners, contractors and subcontractors will be required to follow

What is a proper invoice?

The PPCLA sets outs the minimum requirements of a “proper invoice” which are summarized below.

The receipt of a “proper invoice” by an owner from a contractor triggers the prompt payment regime in Alberta. See below for guidance on how to dispute part or all of an invoice.

Disputing a Proper Invoice

Adjudication:

Adjudication is a form of streamlined dispute resolution process outside of court. Decisions made by the adjudicator may be binding in certain circumstances.

To prepare for Alberta’s prompt payment and adjudication legislation, we’ve provided a list of things to consider advance of the Act coming into force.

Prompt Payment Checklist:

The PPCLA brings a number of changes that will require participants in the Alberta construction industry to update their contracts beyond updating references from the “Builders’ Lien Act” to the PPCLA.

Contractual Updates:

On August 29, 2022, the changes to the Alberta Builders’ Lien Act will take effect, making Alberta the third province in Canada to implement prompt payment and adjudication in its lien legislation.

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Alberta’s Prompt Payment and Construction Lien Act

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COMING August 29, 2022

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Alberta’s Prompt Payment and Construction Lien Act

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COMING August 29, 2022

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In effect as of

August 29, 2022