Getting Paid on Alberta Construction Projects: Prompt Payment and Adjudication Explained

Late payment is one of the most common sources of construction disputes. Alberta changed the rules on it in 2022, when the Prompt Payment and Construction Lien Act came into force on August 29, 2022, adding payment timelines and a fast dispute process alongside the traditional builders’ lien.

What changed

The Act sits on top of the older builders’ lien system, which lets contractors and suppliers register a lien against title to the land when they are not paid. The 2022 reforms added a requirement that payments flow down the contracting chain on set timelines once a proper invoice is delivered, and a right to adjudication for many payment disputes.

The statute also changed some lien-related deadlines, so anyone relying on an old rule of thumb should check the current legislation rather than assume.

Adjudication in plain terms

Adjudication is a quick, interim process. A neutral adjudicator decides a payment dispute in a short window, and the result is generally binding unless and until a court or arbitrator says otherwise. It is designed to keep money moving on a project while the parties argue about the final answer.

The trade-off is speed over depth. Preparing for adjudication means having your contract, invoices, change orders and correspondence organized before a dispute starts, not after.

Practical steps for each party

Owners should confirm what counts as a proper invoice under their contract and the Act, and diarize payment and holdback dates. Contractors and subcontractors should issue invoices that meet the requirements and track deadlines for both payment claims and liens.

Everyone should keep written records of changes to scope and price. Most payment disputes are really disputes about what was agreed.

Construction payment checklist

• Confirm in writing who your contracting party is and what the contract says about invoices and payment timing.
• Send invoices in the form your contract and the Act require, and keep proof of delivery.
• Diarize lien and holdback deadlines from the current legislation, not from memory.
• Log every change to scope and price the day it is agreed.