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alberta

Alberta unveils bill for condo dispute tribunal

Legislation aims to strengthen prompt payment for construction projects and improve governance in condo communities
Wednesday, November 6, 2024

The province of Alberta tabled legislation that would establish a dispute resolution tribunal for condominiums. The law would make it easier for owners and corporations to resolve common disputes outside the court system.

The Service Alberta Statutes Amendment Act, 2024, proposes changes to the Condominium Property Act, the Prompt Payment and Construction Lien Act (PPCLA), and the Public Works Act (PWA) that will make life easier for Albertans.

The bill would also establish that chargebacks to owners for damage they have caused will be treated as contributions (condominium fees), which will better protect the overall financial health and well-being of the condominium community.

Other amendments include the provision of a simple form of voting for simple matters, such as approving a meeting agenda. Additionally, the bill will establish the basis for technical requirements for newly built condominiums to protect consumers against structural or other defects in the construction of condominiums.

“These amendments will increase consumer protection and will improve the lives of condominium owners, boards and the industry,” said Hugh Willis, co-chair Government Advocacy, CCI North Alberta. “Our organization applauds the legislative protection for volunteer condominium board members acting in good faith, similar to protections offered to other volunteers in the non-profit community.

Other changes would result in all construction projects following the same set of prompt payment rules, which were established in legislation in 2021. Previously, Alberta’s government always prioritized prompt payment for government contracts, but the rules in the PPCLA only applied to private sector projects.

Changes to the PPCLA will come into force upon proclamation and clarify the adjudication process to ensure an efficient option for dispute resolution, address the act’s rigidity of including consulting professions like engineers and architects in the PPCLA; rather, allowing them to opt out of holdback requirements and lien rights on a project-by-project basis, and remove ambiguity around when a construction contract is complete.

Amendments to the PWA, which comes into effect in spring 2025, include extending a prompt payment and adjudication framework to Alberta government projects under the PWA. Changes would apply to public construction projects through legislation but exclude maintenance projects related to upkeep of capital assets and special scope contracts.

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