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Alberta Law Update: Changing to a Prompt Payment Builders' Lien System

The Government of Alberta yesterday proposed Bill 37, which passed first reading (it can be found here if you are interested: which if passed would update Alberta's Builders's Lien Act.

The legislative changes will add clearer timelines of 28 days to pay invoices in construction projects. The changes would also extend deadlines for filing liens to 60 days in the construction industry and 90 days in the concrete industry.

In the biggest change, it would add a binding adjudication process for construction disputes.

The adjudication process was most recently rolled out in Ontario. A system will be set up for appointing third party adjudicators; however who these are and pricing for adjudication appears as if it will be set out in forthcoming regulations.

It appears that the parties would retain the option to file a lien and enforce the lien through a lawsuit at the Alberta Court of Queen’s Bench.

The Government has said that it is targeting July of 2021 for the rollout of these changes.

If you need assistance with a Builders' Lien matter, please feel free to contact us.

The information contained in this article is not legal advice. No solicitor client relationship is formed through this article. The reader is encouraged to retain counsel for advice in these matters.

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