Canada:
Bill 37: Builders’ Lien (Prompt Payment) Amendment Act, 2020 Passed Its Third Reading In The Legislative Assembly Of Alberta
17 December 2020
Miller Thomson LLP
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On November 17, 2020, Miller Thomson
provided insight into Bill 37, the Builders’ Lien (Prompt
Payment) Amendment Act, 2020. Bill 37 is intended
to update the Alberta Builders’ Lien Act, RSA 2000 c
B-9, and introduce a prompt payment system, which provides for
strict timeframes for payments between owners, contractors, and
subcontractors.
On November 26, 2020, Bill 37 passed its third reading in the
Alberta Legislature. The Bill introduces a number of changes for
the construction industry in Alberta, including outlining a
timeline for prompt payment, establishing an adjudication system,
creating a mandatory progressive holdback release, and extending
the period to register a lien from 45 days to 60 days. The time
period to register a lien in the concrete industry was extended to
90 days.
As indicated in our initial report, Bill 37 does not include
many updates seen in Ontario and other jurisdictions. Bill 37
passed its second reading on October 28, 2020 and was reviewed by a
committee on November 4 and 24. Our initial report outlined the
amendments adopted as a result of these readings and reviews. There
were, no additional amendments made during Bill 37’s third
reading and the Bill was lauded as a great success by the UCP and
NDP parties.
- Minister of Service Alberta, Nate
Glubish, stated: “This legislation is all about strengthening
the construction industry in Alberta. This is all about protecting
jobs in the construction industry in Alberta. The changes we
proposed in this bill give confidence and certainty to all parties
working in construction, from project owners and general
contractors to subcontractors.” 1 - Bill 37 has bipartisan support, with
NDP MLA Rod Loyola stating: “I don’t agree with many of
the things that this government has been doing within the great
number of pieces of legislation that they have brought before this
House, but on this particular one I have to say that I’m in
agreement. I’m happy to say that our entire caucus is in
agreement because, of course, as I stated in this House before,
this is something near and dear to my heart, something that I was
working on when we were still in government.”2
Bill 37 is due to be proclaimed into law in July, 2021.
Footnotes
1.
Alberta, Legislative Assembly, Hansard, 30th Leg, 2nd
Sess, No 72 (26 November 2020) at 3545.
2.
Alberta, Legislative Assembly, Hansard, 30th Leg, 2nd
Sess, No 72 (26 November 2020) at 3544.
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