Alberta Trade Contractors Council (ATCC) Seeks Your Help With a Prompt Payment Survey
In its first thirteen months, the Prompt Payment Construction Lien Act (PPCLA) has only had seven arbitrations. This is not that unusual. Ontario only had three, in their first year, but over five hundred in year four. It takes a while for projects to be impacted by the ACT (Prime contract signed after 2022-08-29) for the job to begin, and for people to understand and start to enact the new protections the Act allows them.
Along with this, it appears that the Government of Alberta has afforded DOW Chemical, some protection from the Act, at least on the frequency of invoices. The ATCC has reached out today with an email updating this situation, as they understand it, and soliciting feedback ahead of a 2023-10-24 stakeholder meeting on the PPCLA.
Their email reads as follows:
If you have not heard, the provincial government has chosen to provide Dow Chemical with an exemption to a small portion of the PPCLA. See attached Order in Council. It is our understanding that it applies only to length of time for a proper invoice to be issued to the owner. Rather than a proper invoice being required every 31 day, the owner can set the number of days. The intent is that once established, the invoicing interval will apply all the way down the chain. We are seeking clarity on this as the OIC is vague. Once an invoice has been issued the 28 – 7 – 7 payment terms will apply.
Obviously, we are very disappointed and we are taking some time to temper our response.
With the announcement of the Order in Council, Service Alberta also announced their Stakeholder Consultation to review the impact of the PPCLA over the past year. With the exemption being used by government, we intend to push very hard for having prompt payment apply to Albert Infrastructure and for the reinstatement of the Stay provision for an adjudicator’s decision.
To support our position on these and other fixes that may be needed, we are seeking input from your members. The first stakeholder meeting is scheduled for October 24, so please push your members as hard as you can to have them fill out this ATCC Survey:
Please provide any input you can to help the ATCC to best stand up for the rights of contractors, and to improve the PPCLA’s ability to assist contractor’s with payments, cash flow, and lower cost of doing business? Thanks.