The Government of Alberta has approved changes to the Alberta Builders’ Lien Act that are scheduled to come into effect July 2021.

Here are our key takeaways of the biggest changes that will influence Builders’ Lien filing in Alberta.

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Extended Lien Deadlines (Yay!)

  • The standard lien filing period is extended from 45 calendar days to 60 calendar days after completion of work or materials provided
  • Parties in the concrete industry will have 90 calendar days to file a lien claim
  • The deadline for work related to oil or gas wells/well sites remains the same (90 calendar days)

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Increased Minimum Balance for Lien Claims

The minimum balance for a lien claim has changed from $300 to $700

Introducing Prompt Payment to The Construction Industry

The government has changed the name of the Builders’ Lien Act to the Prompt Payment and Construction Lien Act

These changes to the Alberta Lien Act will set a 28-day timeline for project owners to pay general contractors.

The changes to the Alberta Lien Act will also set a seven calendar day timeline after payment is received for contractors to pay subcontractors.

These amendments to the act will help ensure contractors and subcontractors get paid on time, strengthen Alberta’s economic recovery and protect jobs.

Additional Changes

In addition to the above-noted changes to the Alberta Lien Act, there will also be changes involving establishing adjudication and modernizing holdbacks. For additional information regarding these changes please see the source material below.

 

Note: The new rules will not apply to contracts drafted and signed under the existing rules.

They will only apply after the legislation is proclaimed (currently targeting July 2021)

 

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Source Material: https://www.alberta.ca/assets/agency-disclosure/sa-prompt-payment-fact-sheet.pdf

 

 

**Disclaimer: LIEN-PRO by Priority Credit Management ("PCM") is strictly a lien filing agency. We are not lawyers. The information provided by PCM does not constitute legal advice and should not be relied on as such. We strongly recommend that you seek legal advice from a lawyer that practices construction law.

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