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Coming into force next week on August 29, 2022, the Prompt Payment and Construction Lien Act (“PPCLA”) will introduce significant changes for the construction industry.
Owners, general contractors, trades, suppliers, and everyone in between should be aware of the new rules being put into place by the PPCLA . Some of the most impactful changes will involve:
- Mandatory payment timelines;
- Mandatory minimum billing intervals;
- Mandatory progressive holdback release;
- Prescribed adjudication processes;
- Prescribed timelines for disputing payments or payment entitlement;
- New lien registration and holdback timelines;
- New category of lien timelines for concrete work;
- New forms and notices;
- Transitional rules for contracts of certain dates and durations
The PPCLA introduces numerous changes and new mechanisms for anyone involved in construction to navigate. Everyone will have a steep learning curve to adapt to the new rules. Please do not hesitate to contact our office if you would like assistance as these new rules and processes go live starting August 29, 2022.
You can also visit our Prompt Payment Hub for information and guidance to help you prepare.