On April 1, 2025, the Service Alberta Statutes Amendment Act, 2024[1] (“Bill 30”) came into force, ushering in significant amendments to key legislation under the Ministry of Infrastructure, including the Prompt Payment and Construction Lien Act[2] (“PPCLA”) and the Public Works Act[3] (“PWA”).  This bulletin will focus on the key changes made to the PWA.  You can access our bulletin on the changes to the PPCLA here.

The intentions driving the changes made in Bill 30 are to reduce “red tape” by simplifying and streamlining various processes and bringing legislation in line with industry expectations. 

Specifically, Bill 30 amends the PWA to bring public-sector projects in line with the prompt payment requirements set forth in the PPCLA and to provide for adjudication of public sector disputes.  The most significant amendments include:

Public Works are Subject to Prompt Payment

Bill 30 effectively inserts the PPCLA’s prompt payment and adjudication rules into the PWA.  Projects undertaken by the Government of Alberta and/or agents of the Crown will now follow the same prompt payment timelines as private-sector projects.  According to Section 13:

• “Proper invoices” must be issued to the Crown at least every 31 days from the commencement of the work;
• The Crown is required to pay proper invoices within 28 days (or give notice of dispute within 14 days)
• Contractors are required to pay subcontractors the undisputed amount payable no later than 35 days after receiving the subcontractors’ proper invoice.

The intent is to provide consistent and timely payments to contractors and subcontractors who work on public-sector projects.  Notably, the amendments have not mirrored the requirements with respect to notices of non-payment, as seen in the PPCLA. As a result, contractors are obligated to pay subcontractors “undisputed” amounts within 35 days of the subcontractor issuing a proper invoice to the contractor, even if the province has not yet made payment to the contractor.

Public Works are Subject to Adjudication

Bill 30 also incorporates key adjudication provisions from the PPCLA into the PWA, including the appointment of a Nominating Authority to oversee adjudication. However, unlike the PPCLA, the amendments limit the scope of disputes that can be referred to adjudication. In particular, the following kinds of disputes are excluded from adjudication under the PWA:

• Disputes that seek relief other than payment;
• Disputes concerning (i) termination of a contract; (ii) construction schedules; (iii) milestones or completion of a contract; and (iv) force majeure or relief events; and
• Disputes over the monetary limit of $200,000.

Also, Bill 30 amendments to the PWA permit concurrent dispute resolution methods (e.g. adjudication, arbitration, and litigation in court) to proceed at the same time as an adjudication. However, an arbitration or court order will take precedence over an adjudicator’s order.

Exceptions

Notably, the PWA’s new prompt payment and adjudication rules do not apply to either “capital asset upkeep contracts” or a “special scope contracts.” These are contracts that relate to the management or care and maintenance of a capital asset (e.g., facility maintenance and cleaning contracts), or contracts where a contractor provides financing with respect to a public work (e.g., certain P3 projects).

Takeaway

Bill 30 represents a significant change in the construction landscape, representing a move toward streamlining payment processes and adjudication mechanisms for both public and private construction projects in Alberta.  Now that Bill 30 has come into force, all new “public works” contracts and subcontracts must align with the updated legislative requirements. However, any existing contracts or subcontracts entered into prior to April 1, 2025 will be governed by the prior version of the PWA, subject to the regulations.

For more information on this topic and how Bill 30 may impact you, please reach out to a member of Brownlee’s Commercial Litigation and Construction Law group.

[1] Service Alberta Amendments Act, 2024, SA 2024, c 20.

[2] Prompt Payment and Construction Lien Act, RSA 2000, c P-26.4

[3] Public Works Act, RSA 2000, c P-46.