Ontario Construction News staff writer
The Alberta government has introduced amendments to improve prompt payment in construction projects and governance within condominium communities. The Service Alberta Statutes Amendment Act, 2024, proposes changes to the Prompt Payment and Construction Lien Act (PPCLA) and the Public Works Act and sets the foundation for a new Condominium Dispute Resolution Tribunal.
The amendments would expand the PPCLA, which previously applied only to private sector projects, to include all construction projects in the province, including those managed by the government. This will ensure that all construction projects follow the same prompt payment rules established by the legislation in 2021.
“These changes will improve condominium governance, enhance consumer protection, and make dispute resolution more affordable and accessible,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction. “Our consultations with owners, boards, and industry professionals highlighted the need for these reforms.”
Another major change would allow condominium owners and corporations to resolve disputes through the new tribunal, avoiding the costs and complexities of the court system.
The bill also proposes financial safeguards for condominium communities. Chargebacks for damages caused by owners would be treated as contributions, similar to condominium fees, providing greater financial stability. Other proposed amendments include simplifying voting procedures for routine decisions, such as approving meeting agendas, and introducing technical requirements for newly built condominiums to protect consumers from construction defects.
Industry stakeholders have expressed strong support for the proposed changes. “These amendments will improve consumer protection and support volunteer condominium board members,” said Hugh Willis, co-chair of Government Advocacy, CCI North Alberta. “We appreciate the ministry’s efforts in advancing these reforms.”
The Electrical Contractors Association of Alberta also welcomed the changes, particularly the extension of prompt payment rules to government projects. “This step shows the government’s commitment to fairness and transparency in the construction sector,” said Jason Kuziw, the association’s president.
The amendments to the PPCLA would also clarify the adjudication process and extend lien rights and holdback options for certain consultants. Further changes would clarify when a construction contract is considered complete and when final payment is due.
The amendments to the Public Works Act would apply prompt payment provisions to government-managed construction projects but exclude maintenance and public-private partnership projects.
The changes to the PPCLA are set to come into force upon proclamation, with the new rules for the Public Works Act expected in spring 2025.