Introduced by the Minister of Service Alberta in 2020, Bill 37 otherwise known as the Builders Lien (Prompt Payment) Amendment Act, will come into force on August 29, 2022. The Bill will update the Builders’ Lien Act in an effort to provide clarity around payment timelines to those working in the construction industry, and is aimed at ensuring contractors and subcontractors are paid in a timely manner. The Builders’ Lien Act will then become known as the Prompt Payment and Construction Lien Act (the “PPCLA”). Goodfellow & Schuettlaw previously provided a review of the new Act, our previous analysis can be found here: an overview of Bill 37 .
Within the PPCLA is the introduction of a newly defined concept called the “Proper Invoice”. To be considered a Proper Invoice, the invoice must contain the required information as set out in the PPCLA and it must be submitted from the General Contractor to the Owner. It should be noted, the rules of the Proper Invoice under the Act do not apply to subcontractor and supplier invoices, however it is expected that a number of general contractors will contractually require similar invoices from their subcontractors and suppliers despite not being a statutory requirement.
The receipt of a Proper Invoice by the Owner triggers the 28-day statutory payment term under the new prompt payment provisions of the PPCLA and, as a result, we believe that it will be a critically important document in the construction industry. Therefore, we have provided a sample invoice to assist in identifying and detailing the requirements under the PPCLA.
Please note this is intended as legal information and does not constitute legal advice. For any questions regarding the Proper Invoice, the PPCLA, or builders’ liens, please contact Adrianna Worman at 403-668-9195 or aworman@gfslaw.ca or Shaun Chorney at 780-628-3539 or schorney@gfslaw.ca.