Province of Alberta

11/04/2024 | Press release | Distributed by Public on 11/04/2024 16:19

Supporting the condominium and construction sectors

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The Service Alberta Statutes Amendment Act, 2024, proposes changes to the Condominium Property Act, the Prompt Payment and Construction Lien Act (PPCLA), and the Public Works Act that will make life easier for Albertans.

If passed, the bill would make amendments to the Condominium Property Act to provide the framework for establishing the long-anticipated Condominium Dispute Resolution Tribunal. The tribunal will make it easier and more affordable for condominium owners and corporations to resolve common disputes outside the court system.

"Our work with condominium owners, board members, managers and others in the sector has reinforced the need for changes that will meet the needs of condominium owners and residents. This legislation will improve condominium governance, provide additional measures for consumer protection and establish a mechanism for easy access to dispute resolution."

Dale Nally, Minister for Service Alberta and Red Tape Reduction

The bill would also establish that chargebacks to owners for damage they have caused will be treated as contributions (condominium fees), which will better protect the overall financial health and well-being of the condominium community.

Other amendments include the provision of a simple form of voting for simple matters, such as approving a meeting agenda. Additionally, the bill will establish the basis for technical requirements for newly built condominiums to protect consumers against structural or other defects in the construction of condominiums.

"CCI North Alberta is pleased to support the introduction of these legislative changes. These amendments will increase consumer protection and will improve the lives of condominium owners, boards and the industry. Our organization applauds the legislative protection for volunteer condominium board members acting in good faith, similar to protections offered to other volunteers in the non-profit community. We thank the ministry for its efforts in bringing these amendments forward."

Hugh Willis, co-chair Government Advocacy, CCI North Alberta

Additional amendments would result in all construction projects following the same set of prompt payment rules, which were established in legislation in 2021. Before now, Alberta's government always prioritized prompt payment for government contracts, but the rules in the PPCLA only applied to private sector projects.

"On behalf of the Electrical Contractors Association of Alberta, and the entire construction sector, we extend our sincere thanks to the Alberta government for listening to industry concerns and taking decisive action by subjecting itself to Alberta's Prompt Payment Legislation. This critical step demonstrates the government's commitment to fairness and transparency in our sector."

Jason Kuziw, president, Electrical Contractors Association of Alberta

The amendments proposed in the Service Alberta Statutes Amendment Act, 2024, bring forward changes and recommendations commonly heard from Albertans in the respective sectors.

Quick facts

Prompt Payment and Construction Lien Act and Public Works Act amendments

  • The Public Works Act (PWA) governs projects administered by the Crown.
  • Amendments to the PWA would:
    • Extend a prompt payment and adjudication framework to Alberta government projects under the PWA.
      • This includes mandated payment timelines and invoicing provisions including a 31-day billing cycle from prime to owner unless testing or commissioning is required.
    • Utilize the nominating authority as established in Part 5 of the PPCLA and associated regulations.
    • Mirror the PPCLA amendments for adjudication, arbitration and an action in court to proceed in parallel.
    • Apply to public construction projects through legislation but exclude maintenance projects related to upkeep of capital assets and special scope contracts which are projects delivered using a public-private partnership method.
    • Not introduce statutory requirements for holdback or liens on any government project.
  • The PPCLA creates rules for the timing of payments in Alberta's construction industry and sets out a streamlined adjudication process for disputes related to payment or work performed as an alternative to the courts. The PPCLA came into force in August 2022.
  • Amendments to the PPCLA would:
  • Clarify the adjudication process to ensure an efficient option for dispute resolution.
  • Address the act's rigidity of including consulting professions like engineers and architects in the PPCLA, allowing them to opt out of holdback requirements and lien rights on a project-by-project basis.
  • Remove ambiguity around when a construction contract is complete. It would clarify when final payment under a contract or subcontract is considered to have been made and make adjudication available for 30 days after that date.
  • Amendments to the PPCLA will come into force upon proclamation while changes to the Public Works Act come into effect in Spring 2025.

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