Prompt Payment came into force on August 29, 2022. The recent changes are mandatory and will impact business processes and timelines to pay invoices.
Prompt Payment involves the introduction of legislation that establishes firm timelines for payment of invoices associated with the construction industry. This legislation was introduced in Ontario in 2019 and has been adopted or is being assessed in Nova Scotia, New Brunswick, Quebec, Manitoba, Saskatchewan and British Columbia. The push for this legislation across Canada comes from trade and construction groups that identified issues with payment timelines exceeding lien periods which then provides them with limited recourse.
BILD Alberta recommends familiarizing your organization with the implementation of Prompt Payment: Understand the definition of a proper invoice and what the invoice must include.Review payment timelines and your statutory obligation after a proper invoice is submitted.Assess current contracts with your legal professional to identify any required changes.Parties should consider how Prompt Payment may impact…Read More
Service Alberta is delaying the implementation of Prompt Payment to allow additional review of the regulation. Proclamation of the legislation and regulation is expected in spring 2022, with an into force date anticipated in summer 2022. Staff will participate in additional engagement sessions over the next month and provide feedback.Read More
BILD Alberta continues to engage with Service Alberta as a key stakeholder during the drafting of Regulation to support Prompt Payment legislation. As a part of the advocacy work, BILD Alberta is looking for a balanced solution that supports the intent of the legislation while reducing administrative burden on industry. The Regulation is expected this…Read More
Service Alberta introduced additional legislative amendments to the Builders’ Lien Act as part of the Red Tape Reduction Implementation Act, 2021 on April 8, 2021. The legislative amendments are in addition to the changes introduced in Fall of 2020 and add further details to Prompt Payment including: Change adjudication decisions from final and binding to…Read More
Service Alberta formally introduced Bill 37: The Builders’ Lien (Prompt Payment) Amendment Act in the legislature last fall and it received royal assent on December 9, 2020. Regulations are currently under development. The following is an overview of the upcoming changes.Read More
On November 17, BILD Alberta hosted a webinar on the changes to the Builders’ Lien Act, including the introduction of Prompt Payment, which brings changes to invoicing, contracts, and more. This webinar answered questions about the anticipated changes, what members need to be aware of and how BILD Alberta continues to advocate for modifications that…Read More
BILD Alberta’s Advocacy Pre-Legislation When proposed by both the previous and current government, BILD Alberta’s advocacy focussed on delaying any consideration of Prompt Payment legislation in Alberta until a thorough assessment of the impacts in Ontario could be completed. This request was denied repeatedly. Based on the feedback from members and discussion with the Board of Directors, BILD Alberta’s…Read More
History of Prompt Payment in Alberta Discussions surrounding prompt payment were initiated by the NDP Government in late-2018 and the current government has decided to move forward with legislation due to a growing number of complaints related to late payments on construction projects. This has been supported by multiple trade and construction associations. From the onset of BILD Alberta’s engagement…Read More