Prompt Payment: Overview of the Legislation
This is a high-level overview of the new Act and the primary changes it makes to the current Builders’ Lien scheme.
Transitioning to the new Act
All changes come into effect on August 29, 2022.
- Any contract entered into on or after August 29, 2022 will be governed by the new Act.
- Any contract entered into prior to August 29, 2022 will be governed by the Builders’ Lien Act until the contract expires, is terminated, or is amended to conform to the new Act.
This could result in different lien period and holdback periods for contract and subcontracts on the same project. We recommend discussing potential future issues with a member of our Construction Team.
Exemptions from the new Act
The Prompt Payment and Construction Lien Act does not apply to public works undertaken by the Government of Alberta.
Our complimentary on-demand webinar provides an overview of the new Act and the major considerations to bear in mind.