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CCA applauds amendments to AB prompt payment

Thursday, November 7, 2024

The Calgary Construction Association (CCA) is optimistic about the recently proposed amendments to Alberta’s Prompt Payment and Construction Lien Act (PPCLA) and Public Works Act (PWA), introduced through Bill 30, the Service Alberta Statutes Amendment Act, 2024. These changes represent a promising step toward strengthening fairness and efficiency in Alberta’s construction sector.

The amendments introduce clearer definitions for payment deadlines and adjudication processes, fostering a smoother payment cycle across all project levels. Specifically, the revisions to the PPCLA and PWA will enable prompt payment from contractors to subcontractors and suppliers, enhancing cash flow and stability throughout the industry. The CCA is pleased to see the addition of “proper invoice” guidelines for public works projects, which sets a consistent and timely payment schedule, allowing contractors to focus on delivering high-quality work rather than navigating lengthy payment disputes.

For the first time, the province itself will adopt prompt payment standards, a significant advancement that the CCA has long advocated for. By committing to timely payments on public projects, Alberta is setting an example and fostering a more equitable construction landscape. This shift signals a dedication to providing consistent and reliable payments, ensuring that the public sector maintains the same accountability expected in the private sector.

“Reliable, timely payments are essential to maintaining a thriving construction industry,” says Bill Black, president and CEO of the Calgary Construction Association. “These amendments signify Alberta’s commitment to supporting our construction workforce and ensuring they can focus on building the infrastructure that our province relies on.”

 

 

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