Client Bulletin: Amendments to the PPCLA and PWA Now in Force
As of April 1, 2025, key amendments to Alberta’s Prompt Payment and Construction Lien Act (“PPCLA”) and Public Works Act (“PWA”) have come into force.
What You Need to Know:
PPCLA Amendments:
- Streamlined Adjudication: Prompt payment disputes may now be referred to adjudication even if court proceedings are underway, and adjudications can proceed unless a court directs otherwise.
- Consulting Professionals: Engineers, architects, and other consulting professionals may opt out of lien holdback requirements.
- Contract Completion Clarified: New definitions reduce ambiguity around when a construction contract is considered complete.
- Binding Decisions: Adjudicator determinations are binding unless superseded by a court order, arbitration award, or written settlement. A party can also proceed to enforce an adjudicator’s determination even if the opposing party commences a judicial review to overturn the adjudicator’s determination.
- Final Payment Defined: Final payment now excludes lien fund payouts and payments for minimal remaining work after substantial performance.
PWA Amendments:
- Prompt Payment Extended to Public Projects: PPCLA-style payment timelines and adjudication rules now apply to Government of Alberta construction contracts.
- Mandatory Invoicing and Payment Timelines: Proper invoices must be submitted at least every 31 days, with fixed payment deadlines for payment of invoices depending on the payor/payee relationship:
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- Crown to contractor payment – 28 days
- Contractor to subcontractor payment – 35 days
- Subcontractor to subcontractor payment – 42 days
- Limited Adjudication Scope: Only payment disputes under $100,000 may proceed to adjudication.
- Effective Date: Only contracts entered into on or after April 1, 2025 are subject to the new amendments.
These changes are designed to keep cash flowing across the construction industry, reduce ambiguity, and improve dispute resolution efficiency in both private and public sectors.
If you have any further questions regarding these legislative changes, please reach out to our team at Kenny Law.