Prompt Payment - the New Laws of Construction in Alberta and Saskatchewan
Aug 4, 2022 /
Course Code: 13-0818-ONL23
This course is held online over 1 day on the following schedule (All times in Eastern Time Zone):
10:00 am to 6:00 pm Eastern (Will include the usual breaks)
On March 1, 2022, Saskatchewan made prompt payment the law for most Saskatchewan construction projects, becoming the second Canadian jurisdiction, after Ontario, to enter this brave new world.
In Alberta, prompt payment will become the law on August 29,2022 for most Alberta construction projects.
Alberta and Saskatchewan projects subject to the new legislation will see sweeping changes to the old process of monthly payment applications, right down to the very terminology used. The laws replace contractual payment terms with a strict 28 day time limit for owners to pay contractors, and even shorter 7 day limits for contractors to pay their subcontractors and suppliers.
With their introduction of prompt payment and overhaul of lien and other rights, Alberta and Saskatchewan have implemented the most sweeping changes to the law of construction industry payment in these provinces in over a century.
That said, for the next two years the construction industry will have one foot in the new world and one in the old. Because the new rules graft a novel remedy onto existing lien law, transitional rules apply to projects commenced or contracts entered into before the new rules apply but not yet completed. Failure to understand the transitional rules could cause loss of significant legal rights and remedies.
This one-day seminar will teach you everything you need to know to operate effectively in the new environment in compliance with the new legal requirements.
- Overview – the revised Saskatchewan Builders’ Lien Act and the new Alberta Prompt Payment and Construction Lien Act
- Prompt Payment – What it is and How it Works
- Adjudication of Payment Disputes
- Changes to Liens Rights, Obligations, and Remedies
- Transitional Provisions
- Other Important Overlooked Rights and Obligations Under the PPCLA
Who Should Attend
Contractors • Owners • Developers • Consultants • Project and Construction Managers • Lawyers • Construction Consultants with Responsibility For Large Residential • Commercial • Industrial or Institutional Projects and Those Who Are Concerned About Possible Defaults on Their ProjectMore Information
Time: 10:00 AM - 6:00 PM Eastern Time
Please note: You can check other time zones here.
Overview – The New Legislation
- What’s new? Prompt Payment: what is it, and when does it start?
- What’s changed? Amendments to lien rights, procedures, and access to project information.
- Who is affected by these changes?
- Transition rules – when and how do the new rules apply and what’s the effect, if any, on existing projects?
- What is prompt payment?
- It starts with a proper invoice? What’s that and how does it work?
- What happens when a proper invoice is delivered? How prompt is prompt payment?
- What if there’s an issue with a proper invoice? Timelines for initiating and addressing disputes.
- Adjudication: new forums for resolving disputes and new rules
- The legal effect of an adjudication
- Lessons learned from the Ontario experience with prompt payment.
- How to determine whether the new rules and timelines apply to your project or contract
- Effect on prompt payment and contractual obligations
- Effect on lien and other rights
- What’s changed? Holdback periods, registration, and progressive release of holdback.
- Review of how the lien provisions of the legislation will work now
- The nature and purpose of the lien as a remedy
- Owners’ obligations
- Lien claimants’ rights and procedures to follow
- When liens do occur: two paradigm scenarios and two vastly different outcomes
Other Important Overlooked Rights and Obligations Under the Legislation
- Claimants’ enhanced rights to project payment information.
- Trust rights and obligations
- Substantial Performance and holdback
Concluding Remarks and Final Adjournment
InstructorMichael MacKay, B.A., LL.B.
Michael MacKay practiced law in Toronto for over 21 years, the last 19 almost exclusively in the field of construction law, and the last 14 at his own firm. He was a member of the Ontario Bar Association’s Construction Law Section’s Executive Committee from 1993 to 2009, and for most of that time co-edited its newsletter “Nuts & Bolts”. He is a frequent contributor to the Construction Law Letter. For over 20 years, he has travelled all across Canada to talk on construction law topics – including a complete construction law course for EPIC.
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Fee & Credits
$525 + taxes
- 0.7 Continuing Education Units (CEUs)
- 7 Professional Development Hours (PDHs)
- ECAA Annual Professional Development Points
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