Prompt payment legislation changes by the Alberta government are coming to address concerns voiced regarding its application to public works projects and the adjudication process.
The amendments proposed are expected to take effect in spring 2025.
“During engagement, stakeholders in the construction industry expressed concerns the PPCLA do not apply to government-owned construction projects,” a briefing note prepared by the Alberta government noted.
“Stakeholders also identified other concerns with the legislation, including shortfalls in the adjudication process, unintended consequences of including consulting professions, ambiguity around when a construction contract is complete.”
Among the changes to come are:
- An adjudicator’s determination cannot be made non-binding simply by an agreement in a contract that the parties will address disputes through arbitration. Arbitration can only render a determination non-binding if the arbitrator has already made an award.
- Clarification that adjudication can proceed at the same time as an action in court.
- If the court makes a ruling on the merits of a dispute, any ongoing adjudication is terminated.
- To prevent court applications from being used to frustrate adjudication processes, it is now clarified that an application for judicial review of an adjudicator’s determination will not automatically serve as a stay of enforcement.
- A stay may be granted by the court if it is requested.
- Prompt payment rules to be extended to the Crown
- Mandated proper invoicing requirements.
- Mandated invoice timelines, including provisions of 31-day billing cycles.
- Mandated payment timelines.
- The Crown must pay undisputed amount no later than 28 days
To view the full slide deck prepared by the Alberta government on the changes to come, click here.
