Prompt payment and adjudication come to Alberta

On October 21, 2020, the Government of Alberta tabled Bill 37: Builders’ Lien (Prompt Payment) Amendment Act, 2020 (Bill 37), which seeks to modernize and make substantial amendments to the Builders’ Lien Act (Alberta) (the Act) for the first time in nearly two decades to address standing concerns within the construction industry. Bill 37 passed second reading on October 28, 2020, and the proposed changes are expected to come into force by July 2021.

The changes proposed by Bill 37 include the following:

• introducing legislated payment and payment dispute deadlines;
• introducing increased lien registration periods;
• implementing a dedicated adjudication body to deal with payment disputes; and
• renaming the Act the Prompt Payment and Construction Lien Act.

For more information on the changes proposed by Bill 37, read our Osler Update.