Thursday, February 29, 2024
ContractsPrompt Payment Legislation

Helping You Prepare for Prompt Pay Legislation

Your construction associations have been working hard to ensure your voice is heard in the new Prompt Payment and Construction Lien Act (the renamed Builders’ Lien Act) which introduces prompt payment, changes to the existing Builders’ Lien Act and an adjudication process. Industry representatives appointed by the Alberta Construction Association including GowlingWLGs law firm have been directly involved in the stakeholder discussions.

Here’s what you need to know to get prepared…

Timelines

While the Government has not yet released the final timetable, we anticipate:

  • The Prompt Payment and Construction Lien Act will not be in effect until early September, 2022;
  • Regulations to accompany the legislation are to be approved and released by end of February 2022;
  • Following a six month phase-in period to allow for education and the industry to adjust to the new payment regime, contracts signed after the date of the legislation coming in to force will need to comply with the new rules with respect to prompt pay and builders’ liens. We anticipate this in force date for new contracts to be early September;
  • Contracts already in existence at the time of the in force date in early September are expected to have a two year grandfathering period during which the current builders’ lien legislation (that does not have prompt pay or adjudication) will continue to apply
  • If this timetable changes your association will update you as soon as we know

Education

Your Associations plan to offer members a series of resources this Spring to help you prepare for the new rules in September. Watch for:

FAQs with helpful answers will be distributed once the Regulations are finalized and released at the end of February / mid-March.

Educational webinars will be offered to members starting this April. These webinars will be presented by the construction group of the GowlingWLGs law firm which has first hand knowledge of the new legislation and its practical impact. Webinars which feature Q&A so you get the information you need.

Printed resource materials (plain language guides, checklists, and timelines) to accompany the webinars.

We’ll record the webinars so that you can take in the material when convenient.

Resource materials will include lessons learned from the experiences in other provinces where prompt payment has been in place and will be updated as we learn from our own experience dealing with the new legislation.

In person seminars will be scheduled in Fall 2022 once the new payment and builders’ lien regime is in place.

Any questions, feel free to contact your local construction association.