Alberta’s government has passed the Prompt Payment and Construction Lien Act and supporting regulations. This framework sets out clear timelines and rules for payments and liens as well as a new adjudication framework for payment disputes within the construction industry. Regulations come into force on Aug. 29.

The new regulations address rules for administration of the adjudication process, including eligibility; payment of lien holdbacks; transition of existing construction contracts; and adjudication procedures and timelines. It also addresses change orders and how those may be subject to prompt payment rules.

“This framework has been a long time coming. It’s great to see that this government took a problem and consulted extensively with industry to reach a solution,” stated John Winter, chair of the Alberta Construction Association. “This framework will be beneficial for all levels of construction, and I look forward to seeing it come into force.”

Owners have 28-day timelines to pay proper invoices from general contractors. Contractors and subcontractors are required to pay their own subcontractors within seven calendar days of being paid themselves.

Timelines for registering liens move from 45 days to 60 days for the construction industry and from 45 days to 90 days for suppliers within the concrete industry. The oil and gas lien period remains at 90 days.

“We’ve been hard at work over the past two years collaborating with the construction industry to develop a prompt payment framework. This important effort will ensure that hard-working Albertans will be paid on time. These measures support our economic recovery – as well as economic growth – and I’m excited to see them come into force this summer,” said Minister of Service Alberta Nate Glubish.