Bill 37, the Builders' Lien (Prompt Payment) Amendment Act, 2020, received royal assent on December 9, 2020 and will come into force on proclamation. The original timeline for proclamation was the summer of 2021; however, the season came and went without regulations or proclamation. Implementation may occur in 2022, per updates from the Government of Alberta stating that "Service Alberta is currently working with construction industry stakeholders to finalize regulations by February 2022 and bring the prompt payment legislation into force by July 2022."1
For more information regarding the developments of this legislation and a summary of the major changes being introduced by Bill 37, please refer to the following articles:
- Charles W. Bois, Emma L. Johnston, and Matthew E. Wray, "Prompt payment update" (June 17, 2021).
- Emma L. Johnston, Bronwhyn Simmons, and Julia S. Amelio, "Updates to Bill 37: Builders' Lien (Prompt Payment) Amendment Act, 2020" (April 22, 2021).
- Anna Kosa, Steve Rehak, and Emma L. Johnston, "Bill 37: Builders' Lien (Prompt Payment) Amendment Act, 2020 passed its third reading in the legislative assembly of Alberta" (December 15, 2020).
- Anna Kosa, Steve Rehak, Leanna Olson, and Lori Goldberg, "Prompt payments and adjudication are set to arrive in Alberta's construction industry" (November 17, 2020).
- Emma L. Johnston, "The Alberta Construction Trust, the decision in ATB Financial v DLM Oilfield Enterprises Ltd, 2020 ABQB 562, and Bill 37 (Prompt Payment)" (November 17, 2020).
Much of the prompt payment scheme and adjudication process is not covered by Bill 37 and will be elaborated on in the regulations. Stay tuned for updates as the regulations are issued and we move closer to proclamation.
If you have questions about how your company may be impacted by the planned prompt payment legislation, or about construction or payment disputes, the lawyers at Miller Thomson have extensive experience acting for owners, consultants and contractors in the construction industry and can help.
Footnote
1 Government of Alberta, "Introducing prompt payment for construction industry" (accessed on December 17, 2021), online: Government of Alberta
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