As many in the Alberta construction industry are now aware, sweeping changes were made to the province’s construction legislation in the summer of 2022. Two of the major changes were the introduction of prompt payment deadlines for all members of the construction chain, as well as the availability of an adjudication system to settle payment disputes.

The basis of the prompt payment amendments in Alberta was the introduction of the “proper” invoice, and payment timelines related to this. Proper invoices must be issued by any general contractor to the owner every 31 days while on site. Once a proper invoice is issued, this triggers payment deadlines to the general contractor. These deadlines subsequently trigger further payment deadlines for any subcontractors or sub-subcontractors. A summary of these payment timelines and deadlines can be found in the attached figure, titled “Proper Invoice Payment Timelines”

As can be seen from that figure, the owner has either 14 days to issue a notice of dispute to their contractor if they do not agree with the work invoiced for, or 28 days to make full payment. There are then further payment timelines for general contractors to follow for paying their subcontractors, and payment timelines subcontractors must follow for paying their sub-subcontractors.

The second major change coming from the 2022 amendments to Alberta’s construction legislation was the introduction of an adjudication process for disputes over invoice and payment amounts. If any company or individual in the construction chain disputes a proper invoice, they may refer the matter to an “adjudication”.

The adjudication process is meant to be a quicker and more cost-effective solution for companies, rather than dealing with the sometimes long and arduous litigation process. The timelines for the adjudication are seen in the attached diagram, titled “Prompt Payment Adjudication Timelines.”

The adjudication process is designed such that it can often be completed within 100 days (or less).

Further changes were made in 2025 to Alberta’s construction legislation. They make it easier for parties to access the adjudication process. Previously, if final payment had been made by an owner or if a court action had been started by one party, none of the other parties in the construction chain could access the adjudication process. The new changes now allow for a party to refer a matter to adjudication while a court process is ongoing. They further allow any party to refer a matter to adjudication if it is done within 30 days after final payment has been made.

These changes prevent a party from commencing a court action to slow down the adjudication process. It also allows parties to still refer matters to adjudication when the contract has been completed, but final payment has not been made. It ultimately makes the adjudication process, designed to bring quicker resolution to construction claims, more easily accessible for more parties.

This post is written on behalf of the construction law team at HMC Lawyers. It should not be taken as legal advice. If you have further questions or think you may be able to pursue an adjudication or court matter because of failure to pay an invoice for a construction process, please contact the construction law team at HMC Lawyers to further discuss your matter at 403-269-7220.