On August 29, 2022, the Alberta Prompt Payment and Construction Lien Act (the Act) and accompanying regulations, the Prompt Payment and Adjudication Regulation, came into force.¹ The Act amended some of the builders’ lien rules that stakeholders in the construction industry have become accustomed to while working in Western Canada. It also added new prompt payment obligations and introduced an adjudication regime for resolving disputes.

A complete overview of the Act and corresponding regulations can be found at the links below:

• Prompt Payment and Adjudication Toolkit in Canada: Alberta
• Alberta’s Prompt Payment and Construction Lien Act: Key amendments that will impact stakeholders from the construction industry
• How the West is liened: A comparison of builders lien legislation in British Columbia and Alberta

Under the Act, all contracts and subcontracts that were in existence prior to August 29, 2022, were granted a two-year transition period and were temporarily exempt from compliance with the provisions of the Act.² The two-year transition period has now ended, meaning that all contracts and subcontracts that do not conform with the provisions of the Act and regulations must now be amended.³

If you have contracts or subcontracts that should be amended so that they now conform to the Act, or questions about the new rules that apply to your project, please reach out to the authors, Alexis Barr-Gusa, Chelsea Wilson or a member of our Construction group. We would be happy to assist you with navigating this transition.

1. Prompt Payment and Construction Lien Act, c P-26.4 [PPCL].
2. PPCL, s. 74(2); Prompt Payment and Adjudication Regulation, Alta Reg 23/2022 [PPAR]; Prompt Payment and Construction Lien Forms Regulation, Alta Reg 51/2002, as amended by Alta Reg 22/2022 [PPCL Forms Regulation].
3. PPCL, s. 74(3); PPAR, s. 37