Effective April 19, 2023, Service Alberta announces ARCANA (AB) as the Nominating Authority for Construction Adjudication Prompt Payment
ARCANA (AB) Annual Reports
A Guide for Users
Options for Smaller Claims
While amounts owing of under $15K may represent a substantial sum to many contractors, Applicants are cautioned that ARCANA (AB) construction adjudication services are not free. Appointment and adjudicator fees begin at almost $3000, and are often initially borne by the Applicant. The Adjudicator may or may not allocate the cost of the adjudication in any one party’s favour. For those collecting on an Adjudicator’s order, ARCANA (AB) does not provide enforcement services when debts remain unpaid, potentially incurring more cost to those owed money. ARCANA (AB) wants such Applicants to be fully aware of ALL their resolution options:
1) Prompt Payment Construction Adjudication with ARCANA (AB) as detailed in these webpages;
2) Civil Claims Mediation or Litigation, with or without legal representation, for sums up to $100,000. There are additional details regarding this option that you can access from this ARCANA (AB) webpage. Application fees are very low, and Applicants are strongly encouraged to request the FREE mediation option which can achieve resolution faster without added expense; and
3) Register a Lien. ARCANA (AB) does not provide advice or guidance on this option, but note that liens must be registered within 60 days.
Service Alberta Prompt Payment Legislation
Overview
The construction industry is a multi-billion dollar sector of Alberta’s economy that creates thousands of jobs for Albertans.
Payment timelines for Alberta’s construction industry, along with timelines for filing liens and rules for adjudication in the event of a payment dispute, are outlined in the Prompt Payment and Construction Lien Act, the Prompt Payment and Adjudication Regulation, and the Prompt Payment and Construction Lien Forms Regulation.
All new construction contracts in Alberta must adhere to the rules of the Prompt Payment and Construction Lien Act as of August 29, 2022.
Existing contracts that are scheduled to end before August 29, 2024 do not need to be changed to adhere to the new rules. Existing contracts that extend beyond August 29, 2024 have to become compliant by August 29, 2024.
Roster of Available Construction Adjudicators
A roster of ARCANA (AB) Qualified Adjudicators is now posted on the ADRIA online directory at https://adralberta.com/directory/. Under ADR Services please select ARCANA Construction Adjudicator to view the available roster adjudicators in random order. Only these adjudicators are allowed to conduct Prompt Payment Construction Adjudications in accordance with the legislation.
Please note that contacting an adjudicator directly will compromise their ability to accept a file. If you must contact an adjudicator to confirm any aspect of their qualifications, suitability or experience, please do so by email and carbon copy (cc) the other party and their legal representative. Any potential adjudicator will, in turn, Respond to All without compromising their neutrality.
ARCANA (AB) Fee Schedule
Prompt Payment Construction Adjudications under the PPCLA Legislation are intended to provide the construction sector and the public with quick, accessible, affordable and enforceable Determinations and Orders – usually in under 60 days. The PPCLA allows disputants in the construction sector to avoid lengthy and costly litigation in the Courts.
As noted in the fee schedule the appointed adjudicator may require a retainer to be paid when the adjudication is initiated. While it is preferable that the disputing parties share the cost of the retainer, in order to ensure that the adjudication can proceed without delay, the applicant should be prepared to pay the full cost at the outset. Note that Regulation 13(3) specifies that any costs and other charges related to an adjudication shall be equally divided among the parties unless the adjudicator directs otherwise. ARCANA (AB) requires its adjudicators to carefully consider whether these cost should be shared equally or unequally, and to include this decision in the Adjudication Order in compliance with Regulation 26(2).
Please add 5% GST to all fees specified in the ARCANA (AB) Fee Schedule below:
Notice of Adjudication
There is no fee to issue a Notice of Adjudication but, once issued, it is incumbent upon the Applicant to immediately:
A) Work towards resolution with the Respondent if practical;
B) If not resolved, try to agree upon an adjudicator to reduce the Appointment Fee by half; and
C) Keep ARCANA (AB) informed and complete the Application Form if the adjudication appointment is to proceed.
ARCANA (AB) will issue an Application Form and instructions upon receipt of the Notice of Adjudication, but if the adjudication is to proceed, the actions above MUST be undertaken by the Applicant in the four (4) working days following issuance of the Notice. Specifically, this includes completion of the ARCANA (AB) Application Form and payment of the Appointment Fee (usually with reference to Column B and Notes to the ARCANA (AB) Fee Schedule). If the dispute is resolved, or the adjudication is to be discontinued after issuing a Notice of Adjudication, ARCANA (AB) must be informed. Once appointed, the adjudicator will issue further instructions in accordance with the legislated timelines.
ARCANA (AB) Application Form
11-Step Adjudication Process
The PPCLA legislation and regulation uses the terms “days” and “calendar days” to outline the adjudication process. Note that under the legislation “Calendar days” excludes weekends and most recognized holidays. The 11-step process below only uses the word “days”, noting that in most cases (but not all), this refers to working days. A notable exception is Regulation 26(1) [Step 4] where ARCANA (AB) believes that the legislated intent is 30 straight days – i.e. including weekends and holidays. For added clarity, refer to the legislation.
Step 1 – Commencement
Action – The Applicant delivers a Notice of Adjudication to the Respondent and the Nominating Authority in the required form.
Includes a brief description of the dispute being submitted to for adjudication, and the redress sought (usually expressed to include a dollar value).
Specifies a preferred NA and adjudicator (if any) .
ARCANA (AB) will issue an application form to gather more details, and to detail the appointment and adjudicator fees.
Step 2 – Select an Adjudicator (or not)
Action – If practical, the Applicant and Respondent agree on the Adjudicator and notify the Nominating Authority.
Or, if agreement cannot be mutually agreed upon by the parties, any party to the dispute (normally the Applicant) must notify the Nominating Authority that they have been unable to reach an agreement on the selection of an Adjudicator, and request the Nominating Authority to appoint an Adjudicator on their behalf.
Timing – within 4 days of the delivery of the Notice of Adjudication, at which time the Appointment fee must be paid.
NOTE – if the Applicant does not intend to proceed to adjudication after the 4th day, the Nominating Authority must be advised immediately.
The parties are encouraged to communicate with each other during these 4 days and mutually agree upon an Adjudicator. To this end, the parties are encouraged to identify and exclude any Adjudicators that might have a Conflict of Interest, or be otherwise les suitable for the dispute at hand. Similarly, any party can communicate their preferences for an appointed Adjudicator. Direct one-party written or verbal communications with potential Adjudicators are NOT encouraged, as such communications would compromise the Adjudicator. If direct written communications with potential Adjudicators are initiated by any party prior to the appointment, then all other parties to the dispute must be copied.
In all circumstances, the Nominating Authority will confirm the availability, suitability, and willingness of the Adjudicator before appointing.
Step 3 – Appointment by the NA
Action – The Nominating Authority appoints either the Adjudicator agreed to by the parties, or an Adjudicator who the Nominating Authority deems qualified to adjudicate the dispute between the parties, and notifies the parties of the appointment.
The adjudicator may issue directions to the parties at this stage regarding the conduct of the adjudication. Such directions may also be issued during the course of the adjudication process (see Step 6 below).
Timing – within 7 days of Step 2.
Step 4 – Submission of Materials by Applicant
Action – The Applicant must deliver to the Adjudicator and the Respondent, the following materials:
•The Notice of Adjudication;
•A copy of the contract or subcontract, as the case may be; and
•Copies of all documents that the Applicant intends to rely on to prove its claim.
The documents should include a brief summary of the basis for the Applicant’s claim.
ARCANA (AB) provides a secure document transmission app (BOX)
Timing – within 5 days of the appointment of the Adjudicator under Step 3, or such other time as may be directed by the Adjudicator.
This starts the 30-day clock i.e. the timeframe within which the adjudicator must make a determination of the dispute, unless extensions are granted
Step 5 – Submission of Materials by Respondent
Action – The Respondent must deliver to the Adjudicator, and the Applicant, its response which should include the following materials:
•A brief description of the basis upon which the Respondent disputes the Applicant’s claim; and
•Copies of all documents that the Respondent intends to rely on to dispute the Applicant’s claim.
Timing – within 12 days of receipt of the Applicant’s materials under Step 4, or such other time as may be directed by the Adjudicator.
Step 6 – Adjudicator’s Notifications/Directions
Action – At the Adjudicator’s discretion, the Adjudicator may issue directions to, or seek clarifications from, the parties to the dispute.
The Adjudicator shall also give notice to the parties that the Adjudicator has in its possession all the documents and information required to make a determination.
This is where a site visit, hearing or expert witness could be directed.
Timing – In Adjudicator’s discretion
Step 7 – Determination and Order
Action – The Adjudicator delivers to the parties and to the Nominating Authority their written determination of the dispute and a corresponding formal Order.
Timing – within 30 days of receipt of the materials from the Applicant under Step 4.
The Adjudicator may extend this timeline (or any deadline) by up to 10-day increments if necessary or by agreement.
Step 8 – Corrections
Timing – within 4 days after Determination is made the parties to the adjudication must seek a correction of any typographical error in the Order.
Step 9 – NA Certification
Action – The Nominating Authority certifies the Order and sends a copy of the Order to the parties.
Timing – within 7 days of the Nominating Authority’s receipt of the determination and Order under Step 7.
Step 10 – Enforcement
Action – The party seeking enforcement of the Order may file the Order with the Clerk of the Court.
When filed with the Clerk of the Court, the Order has the same legal effect as an Order of the Court.
Timing – If unpaid, 30 days after the delivery of the certified determination and Order of the Adjudicator from the NA under Step 9.
OR – Judicial Review is requested within this same 30 days.
Step 11 – Notification of Enforcement
Action – Party seeking enforcement of the Adjudicator’s Order delivers to the other party written notice of the registration of the Order with the Clerk of the Court.
Timing – within 10 days of the registration of the Order under Step 10.
Responsibilities of a Nominating Authority
Under the PPCLA, a Nominating Authority is required to:
- assess applicants against the prescribed requirements as adjudicators;
- appoint adjudicators and arrange for them to adjudicate specific disputes;
- develop and oversee programs for adjudicator training;
- establish and maintain a publicly available registry of adjudicators; and
- perform any other duties as may be prescribed by regulation.
The Nominating Authority ARCANA (AB) functions as a partnership between the ADR Institute of Alberta (ADRIA), the ADR Institute of Canada (ADRIC), and the Royal Institution of Chartered Surveyors (RICS).
For more information on Prompt Payment Construction Adjudication or how to initiate the adjudication process, contact arcana@adralberta.com or call/text 780-245-4042.
Civil Claims Court and Free Mediation Option
An alternative and cost-effective option for smaller construction prompt payment disputes is Civil Claim Court, and free mediation services that the parties can request or be directed to. Claims of up to $100,000 can be referred to the Alberta Court of Justice Civil Division. Filing fees are low, and many such files are diverted to a half day of free mediation – especially when mediation is requested by the applicant or parties to the dispute. Successful mediated outcomes can be filed as court documents, and mediations can be scheduled much earlier than court dates. If a mediated settlement is not reached, you can still proceed to trial. You can find full details on the following websites:
https://albertacourts.ca/cj/areas-of-law/civil/claims/filing
https://www.alberta.ca/civil-mediation.aspx
Information Regarding Liens
TBA
Enforcement Options
Neither the Courts nor ARCANA (AB) provide enforcement services. Any party to a dispute that is still owed payment more than 30 days after a construction adjudicator’s order is certified should consult Steps 10 and 11 of the 11-step ARCANA (AB) Adjudication process AND the attached guide. Legal counsel is recommended.
Adjudicator Code of Conduct
Adjudicator Complaint and Discipline Policy
Complaints and Discipline Policy
Each of the three partners of ARCANA (AB) currently maintains its own Complaints and Discipline Policies. Steps are currently underway to harmonize these policies with a view to the adoption of single, harmonized ARCANA (AB) Complaints, Determination and Discipline Policy for Construction Adjudication. While all three policies rely on Fairness, due process and the fundamentals of Natural Justice, RICS has the most experience with Construction Adjudication and the nature of complaints that may arise. For this reason, ARCANA (AB) will initially rely on a modified RICS policy, engaging both ADR Institutes, should there be an early complaint. The GOA will be advised as soon as a harmonized policy is adopted.
Interim ARCANA (AB) Complaints Policy
Complaints Procedure (CP) Content Outline:
1. Overview
· Purpose of the customer complaints procedure
2. Matters that may investigated
· Background
· Types of complaints ARCANA (AB) can investigate
· Types of complaints ARCANA (AB) cannot investigate
3. The investigation
· Costs
· What happens during the investigation?
· Potential outcomes
4. Practical information
· Contact details
· Time limits
· Withdrawal of a complaint
Overview
Purpose of this complaint procedure
ARCANA (AB) has adapted this complaints procedure on an interim basis to ensure that those parties who use the services of ARCANA (AB) to source the nomination of construction adjudicators, continue to have confidence in the professionalism and competence of the services we provide and the adjudicators we nominate.
All adjudicators who are nominated by ARCANA (AB), or are on the ARCANA (AB) roster of adjudicators, and hold themselves out as being able to discharge the role of adjudicator, are covered by this complaint procedure.
The purpose of this policy is to ensure that parties to an adjudication, their professional representatives and adjudicators on the ARCANA (AB) roster are fully aware of the procedure that will be followed when a complaint has been received regarding an adjudication or adjudicator.
This document provides an explanation of the matters that are within the scope of the complaint procedure, a step-by-step guide to the process of investigation that will take place, and a summary of recourse or corrective measures that can be considered.
Matters that may be investigated
This procedure for investigating complaints applies to all adjudicators who are on the ARCANA (AB) roster.
We may, at our discretion, refer an allegation relating to the personal and/or professional conduct of an adjudicator to their professional regulatory body, if applicable. Such a referral may, in addition to any steps taken by ARCANA (AB) under this complaint procedure, lead to disciplinary action against the dispute resolver. Examples of conduct which may fall within this category include demonstrations of abuse (verbal/physical), discriminatory or biased behavior, or a deliberate or reckless failure to declare a conflict of interest.
ARCANA (AB) has an unfettered discretion as to who is or is not included on the roster of adjudicators and can decide whether or not to temporarily, or permanently, remove any adjudicator from the roster. Normally, a decision to remove an adjudicator from the roster will be taken to safeguard the interests of parties to adjudications.
Types of complaints ARCANA (AB) can investigate
We can investigate complaints relating to the competencies reasonably expected of an adjudicator on the ARCANA (AB) roster. For example:
a) Inadequate case management including inadequately setting out and communicating the process at the outset; haphazardly requesting paperwork; inefficiently organizing evidence and representations; failing, as far as possible, to ensure that all information provided by the parties or obtained by his or her own efforts, is equally shared with all parties to a dispute
b) Poor time management including failing to adhere to relevant prescribed timetables and time limits; repeatedly cancelling meetings without good reason; late billing of costs (including fees)
c) Complaints relating to an adjudicator’s personal and/or professional conduct in the course of acting as an adjudicator in respect of the parties or others associated with the adjudication process but not directly integral to the decision-making process itself.
Types of complaints ARCANA (AB) cannot investigate
ARCANA (AB) authority does not extend to any issue relating to:
a) The merits or otherwise of decision by the adjudicator on the substantive disputes. This includes the reasoning provided by the adjudicator for the decision; the inclusion or exclusion of, or weight given, to evidence; any matters that go to the merits of rulings by the adjudicator on their jurisdiction or other preliminary or ancillary matters;
b) The reasonableness of an adjudicator’s decision on allocation of costs (if applicable);
Continuing, ARCANA (AB) may not:
c) Enquire into, or in any way interfere with, any on-going dispute resolution process, such as arbitration or litigation;
d) Order an adjudicator to revisit, change, or withdraw a decision; or
e) Consider any allegation of professional negligence relating to the decision of an adjudicator or to instruct an adjudicator to pay compensation based on alleged negligence or any other cause of action.
These issues may only be determined by a Court of Law.
The Investigation
Costs
There is no charge made to either a complainant or adjudicator for a complaint to be lodged with ARCANA (AB), or for undertaking an investigation into a complaint.
What happens during the investigation?
ARCANA (AB) will always attempt to contact the adjudicator by telephone in the first instance to inform him/her that a complaint has been received. In the event that we are unable to speak with the adjudicator, an email will be sent.
Should ARCANA (AB) consider that the complaint does not fall within our remit, a response will be sent to the complainant which will explain the reasons why we are unable to pursue the matter further. The adjudicator may be informed of this outcome, only if he or she has been notified of the complaint before the decision has been made not to pursue the matter.
If ARCANA (AB) considers that all or part of a complaint falls within our remit, the following procedure will be undertaken:
a) ARCANA (AB) will invite the adjudicator to respond to the complaint in writing and we will give a deadline date for the response. A full copy of the complainant’s correspondence will be provided to the adjudicator to ensure they are aware of the issues that need to be addressed. Please note the deadline to respond may be extended by request.
b) ARCANA (AB) will consider any response received from the adjudicator and inform both the complainant and the adjudicator of the next steps.
c) ARCANA (AB) may at any stage seek advice from others within or outside of RICS ADRIC. This may include professionals experienced in adjudication law, practice and procedures, or in the subject matter of the complaint.
d) ARCANA (AB) may at any stage contact the other party or parties to the adjudication and may at our sole discretion seek their comments and observations on the matters raised in the complaint.
e) ARCANA (AB) will consider the matter further and make a decision. We will write to the complainant, the adjudicator and, if appropriate, any other parties to advise them of the outcome.
Potential outcomes
The purpose of an investigation is to ensure the excellence of service provided by the adjudicators appointed by ARCANA (AB). Our objective is therefore not necessarily to punish, but to ensure that adjudicators are fully aware of and at all times act in full compliance with the high standards required of them by ARCANA (AB). Possible outcomes include:
Where an adjudicator has made a minor error in practice or procedure, and the complaint overall is not considered serious, he/she will be given advice and guidance on how to proceed in future disputes where he/she is appointed, so as to avoid similar complaints
Where an adjudicator has not discharged his/her role adequately and this has inconvenienced a complainant, but has not caused serious disadvantage, he/she may be warned as to future conduct, and notified that any further failures to perform adequately could result in suspension or removal from the roster from which appointments are made
Where an investigation determines that an adjudicator is significantly weak in a particular area, he/she may be suspended from the roster from which appointments are made until such time as ARCANA (AB) is satisfied that he/she has addressed the matter through training/coaching.
In addition, all adjudicators undertake regular reassessments, and where a complaint has been received, ARCANA (AB) may bring the complaint to the attention of the Reassessment Board for consideration.
Where an investigation uncovers serious shortcomings in terms of the ability of an adjudicator to discharge his/her role, and ARCANA (AB) considers that the shortcomings have not, or cannot, be resolved by further training or coaching, ARCANA (AB) may remove an adjudicator from the roster from which appointments are made.
Practical information regarding complaints
ARCANA (AB) contact details
Should you be asked by ARCANA (AB) to provide further information or to respond to a complaint, please reply directly to the member of staff who has written to you.
Please note that, while ARCANA (AB) will offer state-of-the-art confidentiality via BOX relating to file correspondence in each and every complaint, no email system can be
guaranteed to be 100% secure. ARCANA (AB) cannot be held responsible for email service/internet system failures and/or downtime.
Time limits
A complaint must be made within twelve months of the act(s) complained of, or twelve months of the completion of the appointment, whichever is the later. (In exceptional circumstances, ARCANA (AB) may extend this time limit).
In most circumstances, a complaint can only be investigated where the adjudication (including any decision as to costs) has been completed and any appeal process exhausted. A complaint cannot normally be investigated until any active legal action against the adjudicator has been finalized.
Withdrawal of a complaint
Should a complaint be withdrawn or resolved informally, ARCANA (AB) may inform the adjudicator in writing.
ADDITIONAL REFERENCES:
RICS – Raising Concerns about Regulated Members:
https://www.rics.org/uk/footer/contact-us/concerns/
ADRIC – Complaints & Discipline Policy:
ADRIA – Complaint Resolution Policy:
About ARCANA (AB)
The partnership between the ADR Institute of Alberta (ADRIA), The ADR Institute of Canada, Inc. (ADRIC) and the Royal Institution of Chartered Surveyors (RICS) as the ADR Institutes / RICS Construction Adjudication Nominating Authority (Alberta) [ARCANA (AB)] brings together three organizations with long-established records of performance in the development and implementation of dispute resolution services in many commercial sectors, notably construction.
The Royal Institution of Chartered Surveyors (RICS) is a global leader in the provision of adjudication services to the construction industry and has nominated in excess of 20,000 adjudicators over the past 24 years pursuant to statutory and contractual regimes in the UK, Australia, New Zealand, Southern Africa and the Republic of Ireland. The RICS training, accreditation and performance monitoring programs for construction adjudicators are regarded as the gold standard by industry professionals and users of adjudication globally. https://www.rics.org/
The ADR Institute of Canada (ADRIC) is Canada’s leading ADR professional organization and presides as the national body of the seven regional affiliate bodies of the ADR Institutes in Canada. It has established benchmarks for best practice for ADR professionals across Canada and offers highly respected and sought-after professional designations. ADRIC members include Canada’s top dispute resolution professionals many of whom are skilled and experienced in construction industry law and practice. ADRIC and RICS have also partnered at the Federal level with the intent of responding to the Canadian Government’s Prompt Payment Adjudication legislation, and are working with individual Affiliates across Canada to support existing and future Provincial Construction Adjudication initiatives. https://adric.ca/
The ADR Institute of Alberta (ADRIA) is well known to the Provincial Government as Alberta’s professional association of mediators, arbitrators, adjudicators and other ADR practitioners, and the source of ADR expertise in Alberta. ADRIA functions as an independent Regional Affiliate of ADRIC in the delivery of highly qualified and credentialed ADR professionals in all sectors of Alberta’s economic and civil life. For over 20 years ADRIA has administered the Canadian Motor Vehicle Arbitration Plan (CAMVAP) in Western Canada, in partnership with the CAMVAP national body. ADRIA has represented the new ARCANA (AB) partnership throughout Service Alberta’s consultation process and the drafting of prompt payment adjudication legislation and directives. https://adralberta.com/
Construction Prompt Payment Adjudication Symposiums
ARCANA (AB) hosted a highly successful Construction Adjudication Prompt Payment Symposium on April 20th, 2023 in Calgary, featuring speakers from the UK and multiple Provinces. Symposium activities for 2024 are now being planned. Visit https://adralberta.com/events/construction-adjudication-symposium/ or contact arcana@adralberta.com for more details and sponsorship opportunities.
Wish to Become a Construction Adjudicator?
Anyone interested in joining the ARCANA (AB) roster of professional construction adjudicators must have at least 10 years of experience in the construction sector, as required by the PPCLA Regulation. Applicants must also register and complete the National ADR Canada / RICS online Construction Adjudicator training program. Details can be found on the ADRIA and ADRIC websites, or by contacting arcana@adralberta.com .
Construction adjudication training will cover the Alberta legislation (and other jurisdictions), and is the minimum training requirement for construction adjudicators in Alberta accepted onto the ARCANA (AB) roster, and in Saskatchewan, and likely in other provinces. Please note that completion of this training is not a guarantee of acceptance on the Alberta roster, as ARCANA (AB) is required to offer a balanced roster covering a broad spectrum of construction sector and legal expertise. Roster adjudicators are also required to hold an ADRIA membership, professional insurance and maintain their professional designations.
FAQ’s
TBA
Prompt Payment Construction Adjudications under the PPCLA Legislation are intended to provide the construction sector and the public with quick, accessible, affordable and enforceable Determinations and Orders – usually in under 60 days. The PPCLA allows disputants in the construction sector to avoid lengthy and costly litigation in the Courts.
Construction Adjudication Determinations and Orders are confidential, provided they are complied with. Construction Adjudication Orders are as enforceable as Court Orders. However, parties should note that neither the Courts nor ARCANA (AB) provide enforcement services.
As noted in the fee schedule, the appointed adjudicator may require a retainer to be paid when the adjudication is initiated. While it is preferable that the disputing parties share the cost of the retainer, the applicant should be prepared to pay the full cost at the outset – noting that the adjudicator has the authority to allocate the total cost of the adjudication equally or unequally between the parties as part of the final Determination and Order.
For more information on Prompt Payment Construction Adjudication or how to initiate the adjudication process, please consult the drop down menus above or contact an agent by emailing arcana@adralberta.com or texting 780-245-4042.
Announcement from the Government of Alberta on August 29, 2022:
Stronger construction rules will bolster industry
A new prompt payment framework ushers in payment timelines and a dispute resolution process for Alberta’s construction sector.
Formerly known as the Builder’s Lien Act, the Prompt Payment and Construction Lien Act is now in force. The new act creates rules for the timing of payments and sets out a streamlined adjudication process for disputes related to payment or work performed as an alternative to court.
Prompt payment is introduced by mandating owners to provide payment to their contractors within 28 days of receiving a proper invoice for construction services and requires that those contractors who receive payment from an owner subsequently pay their subcontractors within seven days.
The new act applies to all private construction contracts in Alberta created on or after Aug. 29, 2022. Current contracts that extend past two years must become compliant with the new rules by Aug. 29, 2024.
“The Alternative Dispute Resolution (ADR) Institutes/Royal Institution of Chartered Surveyors (RICS) Nominating Authority is pleased to offer the services of its trained adjudicators as an approved Nominating Authority (NA) to resolve a full range of potential disputes in Alberta. We offer significant experience in all sectors and our adjudicators will be fully qualified to resolve prompt payment and other construction-related disputes that arise.”
Paul Conway, Executive Director, ADR Institute of Alberta
“Albertans in the construction industry have been advocating for prompt payment legislation for nearly 10 years, so I am excited to celebrate this important milestone. I am proud of the work that Alberta’s government did, collaborating over the last three years with members of the construction industry to develop and pass legislation that will protect jobs and unlock cash flow in this multibillion-dollar industry that employs hundreds of thousands of Albertans.”
Nate Glubish, Minister of Service Alberta
“Payment practices in Alberta have deteriorated over many years. Accounts receivable frequently in excess of 60 days shifts the burden of project financing to contractors and subcontractors. This legislation provides certainty of regular payment for work properly performed and invoiced. The new prompt pay provisions will play an essential role in keeping cash flowing through the life of a construction project. Annual release of lien holdbacks will also free up cash much earlier than under the past legislation.”
Trevor Doucette, senior vice-chair, Alberta Construction Association
“As general contractors, we are prepared to implement prompt payment for our subcontractors and suppliers, ensuring we continue to lead by example in the industry. We look forward to the successful implementation of prompt payment and adjudication in Alberta, which would not have happened without this partnership between industry and government.”
Jason Portas, Alberta chair, General Contractors Alliance of Canada
“On behalf of the hard-working tradespeople and construction trade business owners of Alberta, we are looking forward to the implementation of prompt payment in our province. The ATCC was formed in 2014 with the primary purpose of achieving prompt payment legislation and has been advocating to the Alberta government since then for its implementation. On behalf of the 11 trade contractor associations that are ATCC members, we celebrate the government on this great achievement.”
Terry Milot, chair, Alberta Trade Contractors Council
Quick facts
- These legislative changes, passed in the fall 2020 and spring 2021 sessions, are now in force:
- A new adjudication process for the construction industry to address payment disputes.
- 28 calendar-day timelines for owners to pay proper invoices from general contractors.
- Contractors and subcontractors are required to pay their own subcontractors within seven calendar days of being paid themselves.
- Extended timelines (in calendar days) for registering liens from:
- 45 days to 60 days for the construction industry
- 45 days to 90 days for suppliers within the concrete industry only
- The oil and gas lien period remains at 90 days.
- New language has been added around public-private partnerships:
- Prompt payment rules only apply to construction, not operations and maintenance.
- Municipal public works projects are subject to prompt payment legislation, but provincial government projects under the Public Works Act are not.
- Clarification was added that the prompt payment rules apply to professional consultant (engineers and architects) contracts.
