Alberta’s construction industry continues to adapt to important changes in how payment is managed on projects. The Prompt Payment and Construction Lien Act (PPCLA) and the Public Works Act (PWA) were both amended in 2024, with many of the changes taking effect on April 1, 2025. These updates are designed to improve cash flow, provide more certainty for contractors and subcontractors, and extend prompt payment and adjudication rules more broadly across both private and public projects.
What Has Changed
Under the PPCLA, prompt payment rules have been clarified and extended. Consulting professionals such as architects and engineers now have the option to opt out of lien and holdback provisions if their contracts specifically allow it. However, in doing so, they lose lien and holdback rights.
Adjudication has also been strengthened. Parties can now pursue adjudication even after a contract is completed, provided it is started within thirty days after the final payment date. At the same time, adjudication can proceed even when a lawsuit or arbitration has already been filed, unless a court orders otherwise. This change prevents disputes from being delayed indefinitely in the court system.
The amendments to the PWA are equally significant. Public works contracts entered after April 1, 2025, are now subject to the same prompt payment and adjudication rules that apply in the private sector. Proper invoices must be issued every thirty-one days, and undisputed amounts must be paid promptly down the chain.
The Crown is required to pay contractors within twenty-eight days, contractors must pay subcontractors within thirty-five days, and subcontractors must pay their own subcontractors within forty-two days. Adjudication has also been extended to cover public works disputes, although certain matters such as termination or force majeure are excluded. Some contracts, including facility maintenance agreements and special scope projects, such as certain P3s, remain exempt.
Looking Ahead
The direction is clear: Alberta expects prompt payment to become standard practice on all projects, public and private alike. By extending adjudication and harmonizing payment rules, the province is signalling that fairness and accountability in payment practices are not optional. For industry leaders, now is the time to update contracts, educate staff, and prepare internal systems to comply with the new framework.
The Alberta Construction Association will continue to work with government and industry partners to monitor how these changes are implemented and to ensure members have the tools they need to adapt successfully. We will also be releasing an update to the Plain Language Guidelines to better equip members with an understanding of the rules in place and how to manage through them.
Arcana Information Session
As part of their work to help inform industry on the changes, ARCANA (the construction adjudication and nominating authority) is hosting a virtual information session focusing on the PPCLA and how industry stakeholders can use it to resolve contract disputes.
This 2-hour session is scheduled for November 5, 2025, from 10:00 AM to 12:00 PM and will walk participants through the adjudication process, including what types of disputes qualify, how adjudication works, and how decisions are enforced. The session is designed for contractors, trades, suppliers, engineers, consultants, and owners seeking clarity and confidence in managing payment disputes.
Speakers include:
Dave Simpson, Senior Project Manager, J.S. Held ULC
Adriana Worman, Barrister & Solicitor, Goodfellow Schuettlaw
Barrie Marshall, President, J. Barrie Marshall Consulting Inc.