Update on Alberta Infrastructure Prompt Payment Initiative

Members may recall ACA applauding Alberta Infrastructure’s leadership in promoting prompt payment in Alberta’s construction industry (click here for article in April 20, 2016 issue).

Specifically, Alberta Infrastructure (AI) added payment terms to their contracts that specified a maximum time for payment to the prime, confirmed payment of all undisputed amounts for each progress pay, and obliged the contractual chain to confirm through statutory declaration timely payments.  To promote transparency, AI added a mechanism whereby subs and suppliers could enquire whether payment had flowed to the prime (1 – 844-252-5322 or infras.payments@gov.ab.ca).

Alberta Infrastructure entered into 10 contracts in May 2016, and 11 in June 2016, with the new payment provisions in place.  As of July 13, AI has not received any enquiries from subs or suppliers on these projects, which are obviously in early stages.  AI has committed to providing ACA a quarterly report which we can share with the membership.

ACA once again applauds Alberta Infrastructure’s leadership.  In partnership with local construction associations, ACA will continue to promote the AI approach to other public owners across Alberta.