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 PPCLA.  You can access our bulletin on the changes to the PWA here.

The PPCLA came into force in Alberta on August 29, 2022 and was the first significant update to Alberta’s builders’ lien legislation in decades, incorporating prompt payment and adjudication regimes similar to those existing in other Canadian jurisdictions.  The PPCLA sets deadlines for the payment of all owners, contractors and subcontractors involved in a construction project. It establishes the procedure for filing a lien against such property, and for initiating adjudication of payment disputes. 

The changes introduced by Bill 30 are intended to improve and refine the PPCLA, clarifying the adjudication process and creating an “opt out” for certain professional services consultants.  New contracts must align with the updated legislative requirements, but any existing contracts will continue as written until project completion.

Opt-Out for Consulting Professionals: s. 5

Any consulting professionals, including architects and engineering firms, now have the ability to waive their lien rights and opt out of holdback requirements on a project-by-project basis. This must be expressly set out in the contract or subcontract, requiring the agreement of the other contracting party. The impact of this amendment is that it empowers consulting professionals to receive full payment for their work, instead of being subject to a 10% holdback under the PPCLA. This waiver does not apply to the prompt payment and adjudication regime. 

Adjudication Process Amendments: ss. 33.4

The pre-amendment PPCLA permitted contractors and subcontractors to advance a payment dispute to adjudication only if the notice of adjudication was given before the contract or subcontract was completed, unless the parties agreed otherwise. This process failed to account for instances where a contract was completed but final payment under the contract had not been made. The section now amended allows for adjudication at any time prior to the date that is 30 days after the date of final payment, unless the parties to the adjudication agree otherwise. 

Pursuant to the new Section 33.4(3) of the PPCLA, the date of “final payment” means the earlier of:

• The date that complete payment of the amount set out in the contract or subcontract is made; and   
• The date that complete payment of the amount set out in the contract or subcontract is required to be made under Sections 32.2, 32.3 or 32.5. 

The amendments expressly clarify that certain payments do not constitute “final payment”.  This includes payment of the major or minor lien fund, or payment for work done or material furnished after the certificate of substantial performance is issued. 

Concurrent Dispute Mechanisms: s. 33.4

Under the prior iteration of the PPCLA, adjudication ceases when a party commences a court action. Parties have deliberately utilized this in the past to slow down the dispute resolution process. With the new legislation changes, parties can now concurrently commence proceedings with the Courts and adjudicators. The aim with this change is to give fuller effect to the legislature's intent to make adjudication the default forum for resolving construction disputes. This being said, if the Court makes an order on the merits of the claim while an adjudication of the matter is ongoing, the adjudication is still automatically terminated.

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.