In December, ACA along with our partner associations sent a letter to the Minister of Infrastructure Guthrie and Minister of Service Alberta and Red Tape Reduction Nally on the recently passed prompt payment amendments and the next steps to address lingering concerns.
As previously noted, the ACA commended the government’s efforts to include public projects in prompt payment and streamline dispute resolution. However, we still feel there are critical issues that must be met to bring out the best from the legislation.
The ACA supports the inclusion of prompt payment and adjudication mechanisms in the Public Works Act (PWA). These provisions are vital to fostering efficient payment processes and resolving disputes within Alberta’s construction industry, benefiting all stakeholders in the construction chain. Recent changes via the amendments in Bill 30 present challenges that could hinder its intended effectiveness.
ACA recommended that the government bring the Prompt Payment Construction Lien Act (PPCLA)and PWA into further alignment on a number of issues.
As an example, we propose that the $200,000 threshold for adjudication under the Public Works Act is too low and should be amended. This threshold is also not consistent with the PPCLA where there is no such limitation granting the adjudicators and/or parties involved more discretion to decide if disputes exceed appropriate limits.
We are hopeful that this and other changes could be addressed to bring even more consistency between government and industry projects. The ACA and its partner local construction associations will continue to work with the government to resolve it over the coming months. Stay tuned.