The provincial government says its new prompt payment legislation will make sure contractors and subcontractors will be paid on time after invoices are delivered.
The new law, which replaces the Builder’s Lien Act, ensures that contractors are paid within 28 days of receiving a proper invoice and those contractors pay their subcontractors within seven days.
Officials say the Prompt Payment and Construction Lien Act is something the industry has been seeking for the past 10 years.
“I am excited to celebrate this important milestone,” said Service Alberta Minister Nate Glubish in a release.
“I am proud of the work that Alberta’s government did, collaborating over the last three years with members of the construction industry to develop and pass legislation that will protect jobs and unlock cash flow in this multibillion-dollar industry that employs hundreds of thousands of Albertans.”
The Mechanical Contractors of Alberta (MCA) is one of the organizations that pursued the legislation.
In a release, the group calls it “a momentous day for all trade contractors in Alberta.”