Alberta looks to bolster construction prompt payment laws

Key Takeaways:

• The proposed amendments will align prompt payment rules for all construction projects in Alberta, extending the 2021 Prompt Payment and Construction Lien Act (PPCLA) rules beyond private sector projects to include public projects.
• The amendments introduce clear deadlines for payments and define “proper invoice” guidelines. This ensures timely payments from contractors to subcontractors and suppliers, fostering financial stability across all levels of construction projects.
• The bill includes updates to the Condominium Property Act, such as creating a Condominium Dispute Resolution Tribunal, simplifying voting processes, and protecting against structural defects in new condos.

The Whole Story:

Alberta has tabled amendments to strengthen prompt payment for construction projects and improve governance in condominium communities

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

The Calgary Construction Association (CCA) stated that it is optimistic about the recently proposed amendments, saying the changes represent a promising step toward strengthening fairness and efficiency in Alberta’s construction sector.

In a press release the group said that the amendments introduce clearer definitions for payment deadlines and adjudication processes, fostering a smoother payment cycle across all project levels. Specifically the CCA noted that the revisions will enable prompt payment from contractors to subcontractors and suppliers, enhancing cash flow and stability throughout the industry. The CCA added that it 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.

The CCA stated that by committing to timely payments on public projects, Alberta is setting an example and fostering a more equitable construction landscape. They believe 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.”

The changes also drew comment from the Edmonton Construction Association, which urged legislators to support them.

“Our industry is built on folks who honour their words. We committed to members that this issue would be a priority. The Government of Alberta committed the same to us, and it kept its promise. We’re grateful for the change, and we want to recognize all of those in government who listened to our concerns and proposals for solutions, including many members of Cabinet and senior civil servants,” said ECA President David Johnson. “This is a testament to the value of collaboration with government, and with our provincial association. These amendments are a critical step toward ensuring the Government of Alberta remains a preferred customer for our members, by ensuring equitable treatment for businesses and the skilled trades workers we rely on.”