Prompt Payment & Construction Lien Act: Comes into effect today!

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Good afternoon ATCC Members,

 

Today the Prompt Payment and Construction Lien Act comes into effect. The government of Alberta just posted the following release this am Stronger construction rules will bolster industry | alberta.ca

 

We hope that this reminder from Gowlings WLG helps you understand whether the new legislation applies to your contract, subcontractor, or supplier agreement. Here are the transitionary provisions of the new legislation:

 

  1. Anyone who is performing work, providing services, or furnishing goods or materials with respect to an improvement in land must comply with the new legislation.

 

  1. The new legislation does not apply to Public Works projects, P3’s with the Government of Alberta, Federal Government projects, or operations and maintenance work that does not involve an improvement to the project lands.

 

  1.  The new legislation applies to municipal, county and regional district projects undertaken in Alberta.

 

  1. The new legislation applies equally to owners including home builders, architects and professional engineers who are registered as professionals and providing consulting services to an improvement, contractors, subcontractors, and suppliers.

 

  1. The new legislation will apply to your contract regardless of the type of contracting approach or model, or payment process that is being used.

 

  1. The new legislation applies to suppliers even if they are located outside of Alberta as long their product is being used in an improvement in Alberta.

 

  1. The new legislative provisions apply to contracts between an owner and a contractor entered on or after August 29, 2022.

 

  1. The new legislation will apply to subcontracts and supply agreements based upon the date of the contract between the owner and the contractor – NOT the date of that the subcontract or supply agreement is entered into between the subcontractor and the contractor or the supplier or the contractor – so you will need to know the date of the prime contract to know if the new legislation applies to your subcontract or supplier agreement.

 

  1. The provisions of the old Builders’ Lien Act will continue to apply if the prime contract was entered into before August 29, 2022, even if a subcontract or supply agreement is entered after August 29, 2022; and

 

  1. If the duration of the contract between the owner and the contractor exceeds two years from August 29, 2022, after two years the new legislation will apply to the contract, and the contract terms, including all subcontracts and supply agreements, must be revised to comply with the new legislation.

 

This legislation will dramatically impact the way invoices are rendered and will set mandatory time periods in which payments must be made to all parties involved in the construction chain.

 

Are you ready for these significant changes? On September 6-8, @10:30 am, Join ATCC/MCA AB and Gowling WLG’s Construction Practice Group in Alberta for a complimentary webinar series to help you understand the new legislation and its impact on your organization, including your administrative processes, contracts, bonding, financing, insurance, and project delivery.

 

For details on each of the 3 1-hour series presented please click and register here

 

Regards,

 

 

Russ Evans, MEM

General Manager

russ@mca-ab.com

C  403-863-5158   P 403-250-7237   TF 1-800-251-0620   www.mca-ab.com

 

ALBERTA

Trade Contractors Council

#204, 2725 – 12th Street NE Calgary, Alberta T2E 7J2 … read more

ATCC News

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Good Afternoon,

The attached letter has been sent to AE Minister Nicolaides in response to a meeting between ATCC representatives and the minister.

220823_STAE_ Nicolaides_ATCC_Follow up_FNL … read more

The Alberta Trade Contractor Council Present: Prompt Payment Seminar Series

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The Alberta Trade Contractor Council Present: Prompt Payment Seminar Series

 

10:30 am – 11:30 am each day

3 part series – September 6, 7, & 8th 2022

 

Sept 6 – The Journey of a Trade Contractor’s Invoice

Sept 7 – A Step by Step Guide to Dispute Adjudication

Sept 8 – The evolution of contracts under prompt payment legislation

 

These sessions will provide details required to help your business prepare to successfully operate within the rules of prompt payment legislation. Invoicing protocols, forms and notices, the process of adjudicating disputes, and what you need to know before legislation is enacted on August 29th, 2022.

 

This legislation will dramatically impact the manner in which invoices are rendered and will set mandatory time periods in which payments must be made to all parties involved in the construction chain.

 

The webinar will include over 100 FAQs relating to prompt payment, builders’ liens and holdbacks, adjudication, consolidation, the transition period and what your organization can do to get prepared. It will also include a segment on lessons learned from other provinces who have prompt payment legislation already in place.

Registration is now open, more detailed descriptions can be access:

here.

Register now220815Prompt Payment Seminar Series Prompt Payment and Construction Lien Act – No 3 V3(52579515.1) Prompt Payment and Construction Lien Act- FAQs Issue No 2 (V2)(52593215.1) Prompt Payment and Construction Lien Act-FAQ (V2)(50393948.1) … read more