{"id":30606,"date":"2025-04-03T08:59:00","date_gmt":"2025-04-03T12:59:00","guid":{"rendered":"https:\/\/www.millerthomson.com\/?p=30606"},"modified":"2025-04-11T15:36:49","modified_gmt":"2025-04-11T19:36:49","slug":"major-changes-alberta-prompt-payment-and-construction-lien-act-public-works-act-take-effect-april-1-2025-what-contractors-owners-need-to-know","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/construction-and-infrastructure-law\/major-changes-alberta-prompt-payment-and-construction-lien-act-public-works-act-take-effect-april-1-2025-what-contractors-owners-need-to-know\/","title":{"rendered":"Major changes to Alberta\u2019s Prompt Payment and Construction Lien Act<\/i> and Public Works Act<\/i> take effect April 1, 2025: What contractors and owners need to know"},"content":{"rendered":"\n

In our December 13, 2024 article<\/a>, we outlined a series of changes to Alberta\u2019s Prompt Payment and Construction Lien Act <\/em>(\u201cPPCLA<\/strong>\u201d),[1]<\/a> and the Public Works Act <\/em>(\u201cPWA<\/strong>\u201d)[2]<\/a> that will be implemented pursuant to Bill 30, the Service Alberta Statutes Amendment Act, 2024<\/em> (\u201cBill 30<\/strong>\u201d).<\/p>\n\n\n\n

Our office also recently provided an overview of the changes under Bill 30 in a March 19, 2025 webinar presentation<\/a>.<\/p>\n\n\n\n

On March 27, 2025, the Alberta government confirmed that that the portions of Bill 30 amending the PPCLA and PWA will be proclaimed into force on April 1, 2025.<\/p>\n\n\n\n

The full extent of the changes implemented under Bill 30 as they pertain to the PPCLA and the PWA are outlined in our previous article; however, we have also provided a brief summary below for your reference.<\/p>\n\n\n\n

Amendments to the PWA<\/h2>\n\n\n\n

Parties working in construction in Alberta should be particularly alert to amendments to the PWA which incorporate prompt payment and adjudication into the legislation. These amendments apply to contracts entered into with the Province (or its agent) on or after April 1, 2025. Specifically, a prompt payment process will apply on construction contracts with the Province of Alberta (subject to limited exceptions). As was the case with the implementation of the PPCLA, this change is likely to have the most immediate impact as businesses will need to ensure their internal accounting processes align with the legislation.<\/p>\n\n\n\n

The amendments also allow parties to seek adjudication on provincial projects, but only on smaller disputes (under $100,000), and create a priority for parties making claims under the PWA to amounts payable on the contract with the crown.<\/p>\n\n\n\n

Amendments to the PPCLA<\/h2>\n\n\n\n

The amendments to the PPCLA are more targeted and for the most part concern the adjudication portions of the legislation. These amendments will expand the reach of adjudication as it will now be available after project completion as well as where an arbitration or court action has been commenced. The specific amendments provide that adjudication is available until the date of final payment. Unfortunately, the definition of final payment leaves room for disagreement. Additionally, under the amended PPCLA adjudicators\u2019 orders can now be entered with the court even where an application for judicial review has been made; the effect of this change is to allow enforcement of an order for payment even where the party is seeking to have the decision overturned by judicial review.<\/p>\n\n\n\n

The amendments also provide that consultants can waive or opt-out of the PPCLA. Consultants doing so will not be subject to holdback obligations on contracts, but will also lose lien rights.<\/p>\n\n\n\n

Conclusion<\/h2>\n\n\n\n

Should you have any questions about the PPCLA or the PWA, and how you or your organization may be impacted by these legislative changes, please contact Miller Thomson\u2019s Construction and Infrastructure Group<\/a>.<\/p>\n\n\n\n

\n\n\n\n

[1]<\/a> Prompt Payment and Construction Lien Act<\/em>, RSA 2000, c P-26.4<\/p>\n\n\n\n

[2]<\/a> Public Works Act, <\/em>RSA 2000, c P-46<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

In our December 13, 2024 article, we outlined a series of changes to Alberta\u2019s Prompt Payment and Construction Lien Act (\u201cPPCLA\u201d),[1] and the Public Works Act (\u201cPWA\u201d)[2] that will be implemented pursuant to Bill 30, the Service Alberta Statutes Amendment Act, 2024 (\u201cBill 30\u201d). Our office also recently provided an overview of the changes under […]<\/p>\n","protected":false},"author":118,"featured_media":25538,"parent":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[539],"insight-format":[415],"class_list":["post-30606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction-and-infrastructure-law"],"acf":[],"yoast_head":"\nMajor changes to Alberta\u2019s Prompt Payment and Construction Lien Act and Public Works Act take effect April 1, 2025: What contractors and owners need to know | Miller Thomson<\/title>\n<meta name=\"description\" content=\"Alberta\u2019s prompt payment landscape is shifting in the construction industry \u2014 is your organization ready? 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