P R O M P T PAYMENT
Bill 37: The Builders’ Lien (Prompt
Payment) Amendment Act contains
the first significant changes
to Builders’ Lien Act in nearly 20 years.
Similar to recent legislative amendments
in other Canadian jurisdictions,
the goal of Bill 37 is to modernize
Alberta’s construction legislation, provide
payment certainty and unlock cash
flow. Bill 37 received royal assent on
Dec. 9, 2020. Amongst other modernizations,
the amendments rename the
current Builders’ Lien Act as the Prompt
Payment and Construction Lien Act.
The Builders’ Lien Act applies only
to titled pieces of land where an interest
can be registered against the title
of a legally defined parcel of land.
Pursuant to Bill 37, liens will continue
to be unable to be registered against
public highways.1
The following amendments from Bill
37 that come into effect upon proclamation
are important to all stakeholders in
the Alberta construction industry.
Liens
The new legislation extends the period
of time that liens may be filed.
Currently, contractors and subcontractors
have 45 days to file a lien from the
time work is completed or materials
are provided unless the work pertains
to the oil and gas industry, which has a
90-day period.
The general time limit
of 45 days to file a lien
is extended to 60 days
under the amendments.
Similar to the
oil and gas industry,
the concrete
industry will also benefit from an
extended filing period.
Under the amendments, a contractor
or subcontractor in the concrete
industry has 90 days to file a lien. Bill
37 is not clear on what type of concrete
work benefits from this extended
time period. Bill 37 defines such concrete
work as that done “with respect
tele52/123RF
Bill 37 New year, new payment and lien requirements
in the Alberta construction industry
By James J. Heelan, Q.C. and Amy Deprato, Bennett Jones LLP
ALBERTA HEAVY Quarter 1 2021 19
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