Your government has been focused on working with every industry in Alberta to find ways to make the regulations that govern them more streamlined and make common sense.
After listening to contractors, tradespeople, and labourers talk about the issues they are facing, your government has made the much-needed changes regarding payments in the construction sector, and the need for better written protections.
This is a multi-billion-dollar industry, which employs over 238,000 Albertans and is in full speed as our economy is growing. Your government wanted to ensure workers get paid on reliable timelines; and should payment disputes arise, they now have accelerated options to resolve the dispute. The new payment rules are now in place and will help free up cash flow and support jobs in this industry. Existing contracts that extend beyond August 29, 2024, must be compliant with the new rules by August 29, 2024.
We recognized the challenges that delayed payment for construction services delivered on a project, by 45 to sometimes over 75 calendar days, presented for workers needing to pay bills and make payroll. Our government wants to do everything it can to keep investment flowing, and to keep skilled workers employed here in Alberta.
The following changes to the Prompt Payment and Construction Lien Act (formerly the Builder’s Lien Act) were made: Requires payment by project owners within 28 calendar days of receipt of a proper invoice; Requires contractors and subcontractors to subsequently pay their own subcontractors within seven days of being paid themselves; and creates a new adjudication process for the construction industry to address payment disputes.
For more information, visit www.alberta.ca/introducing-prompt-payment-for-construction-industry.aspx.
MLA – Calgary North West Sonya Savage proudly serves the following Communities: Rocky Ridge, Royal Oak, Scenic Acres, Tuscany
