Bill 37: Proposed Prompt Payment Legislation

Editors note: As this topic evolves, our team will continue to provide updates and commentary. Our most recent article pertaining to this subject can be found here.

  By Graham Henderson and Corbin Devlin

The Alberta Government has introduced Bill 37, which proposes wide-ranging changes to the Alberta Builders’ Lien Act. The Act is proposed to be renamed the Prompt Payment and Construction Lien Act.

The amendments are focused on addressing payment timelines in the construction industry. If passed, the changes will impact a wide variety of topics, such as lien registration deadlines, pay-when-paid clauses, and holdback rules.  As mentioned in the Alberta Construction Law Blog, this proposed reform follows the example of other Canadian jurisdictions.  However, the Bill is custom tailored to Alberta, based on priorities identified in recent consultations by Service Alberta, as well as existing features of the Builders’ Lien Act that are unique to Alberta.

More information on Bill 37 is outlined in the press release issued by the Alberta Government.

McLennan Ross LLP will be providing further details and commentary on Bill 37 in the near future.