Alberta was the first Western Canadian province to bring in a modern prompt-payment regime, followed by Saskatchewan (March 2022) and Manitoba (April 2024). The Prompt Payment and Construction Lien Act (PPCLA), in force since August 29, 2022, replaced the prior Builders’ Lien Act framework and added three things that did not exist under Alberta law before: a statutory payment clock, a statutory adjudication mechanism, and a unified proper-invoice rule.
This guide explains the rules in plain language for Alberta trades contractors. Every section reference is to the PPCLA (RSA 2000 c.P-26.4) as currently in force.
The 28-day payment clock
When you deliver a proper invoice to the owner, the owner must pay within 28 calendar days. The clock starts on delivery, not on issuance. Once paid, you must pass payment down to your subcontractors within 7 days, and each subcontractor must do the same. If the chain stalls and payment does not flow down, the affected party can issue a notice of non-payment and refer the dispute to adjudication.
What is a “proper invoice” under the PPCLA?
The PPCLA defines a proper invoice with specific content requirements. An invoice that meets these requirements starts the 28-day clock. An invoice that does not can be rejected by the payer.
The required elements are:
- The contractor’s name and business address.
- The invoice date and the period of work covered.
- A description of the services or materials supplied.
- The amount payable for the services or materials.
- The name, title, and contact information of the person to whom payment is to be sent.
- The payment terms.
- Any other information specified by the regulations.
Most US-built invoicing tools omit the period of work and payment-recipient details. An invoice missing either is not a proper invoice and the 28-day clock does not start.
Lien preservation: 60 days (or 90 for concrete and oil/gas)
Under section 41 of the PPCLA, the general lien preservation deadline is 60 days from the last day of work or material supply under the lien claimant’s own contract. Two specific categories get a 90-day window:
- Concrete supply for the foundation or structure of a building.
- Oil or gas well sites, work performed in connection with an oil or gas well or oil sands site.
If you are a concrete supplier or working on a well site, confirm the 90-day window applies to your specific work before relying on it. The 60-day default is the safer assumption.
After preservation, a statement of claim plus lis pendens must be filed within 180 days of registration (longer if the owner serves a notice to prove lien). Missing the perfection deadline extinguishes the lien even if preservation was timely.
Markup’s lien-deadline tracker handles the AB 60-day clock automatically (and supports a manual 90-day override for concrete and oil/gas). Try the free calculator.
Statutory adjudication
Either party to a construction contract can refer a payment dispute to an adjudicator nominated by an Authorized Nominating Authority. The adjudicator must issue a determination within 30 days of receiving the case materials, and payment is due within 10 days of the determination.
The determination is interim-binding. It must be paid even if either party later challenges it in court. This changes the leverage in a payment dispute meaningfully: a payer cannot stall a contractor by threatening litigation, because the adjudicated amount is payable regardless.
Adjudication fees and adjudicator hourly rates are set by the nominating authority and vary by claim size. Confirm current rates before commencing.
Statutory holdback
Alberta’s statutory holdback is 10% of each progress payment, retained until released under the PPCLA. Holdback must be withheld from every progress payment, paying it out early can create personal liability for unpaid subcontractors who have a lien right against the holdback fund.
Alberta PPCLA vs Ontario Construction Act
Alberta’s and Ontario’s prompt-payment regimes are structurally similar but differ in important ways.
Sources
- Prompt Payment and Construction Lien Act, RSA 2000 c.P-26.4: canlii.org
- Government of Alberta, Prompt payment rules for the construction industry: alberta.ca