[co-author: Patrick Schembri - Articling Student]
On October 26, 2020, we provided an overview of the key features of Bill 37, Builders' Lien (Prompt Payment) Amendment Act, 2020, which is intended to amend the Alberta Builders' Lien Act (BLA) and become the Prompt Payment and Construction Lien Act. On October 28, 2020, Bill 37 passed its second reading in the Legislature of Alberta and on November 4, 2020, an amendment to Bill 37 titled Amendment A1 was carried. This amendment made substantial modifications to Bill 37 including:
Subject to future amendments, the foundation of prompt payment and adjudication in Alberta has been set although many important details have been left to the regulations and are still being developed.
Once proclaimed, Bill 37 will have a significant effect on the construction industry in Alberta. We recommend that industry participants keep themselves updated on ongoing developments, and take proactive planning measures to prepare themselves for these effects.