Alberta Record

· Bill / New regulatory framework · enacted

Bill 30 — Public Works Contracting, Prompt Payment, and Adjudication Framework

Establishes new prompt payment requirements and a mandatory adjudication process for public works contracts, while also enhancing transparency in public procurement and broadening the definition of 'public work.'

Moderate impactCentralization of powerCensorship & access to informationLocal autonomyThe public, directlyLegislature

What changed

  • The definition of 'public work' is broadened, removing the previous limitation to contracts entered into by the Minister or Crown agent (s. 3(3) of Bill 30, new s. 1(g) of Public Works Act).
  • New section 6 of the Public Works Act mandates public disclosure of the identity of each compliant tenderer and the amount of the successful tender (s. 3(6) of Bill 30).
  • New sections 13.1 to 13.4 of the Public Works Act introduce detailed rules for 'proper invoices' and set payment deadlines for public works contracts (Crown to contractor within 28 days, contractor to subcontractor within 35-42 days).
  • A mandatory adjudication process, based on the Prompt Payment and Construction Lien Act, is applied to disputes arising from public works claims, with a designated Nominating Authority (s. 2(12) of Bill 30, new s. 14.1-14.3 of Public Works Act).
  • Claimants under public works contracts are granted priority over other non-Crown claimants for money payable under the contract (s. 2(13)(b) of Bill 30, new s. 15(5) of Public Works Act).
  • Exemptions from prompt payment and adjudication rules are created for 'capital asset upkeep contracts' and 'special scope contracts' (s. 2(12) of Bill 30, new s. 14.5 of Public Works Act).

Why it matters

  • Expands the scope of projects considered 'public works,' potentially subjecting more contracts to the Act's provisions and the new prompt payment/adjudication rules.
  • Increases transparency in public procurement by requiring public disclosure of tenderer identities and successful bid amounts, enhancing accountability in government contracting.
  • Establishes a new provincial-wide standard for payment terms and dispute resolution in public works, aiming to improve cash flow for contractors and subcontractors and centralise dispute resolution.
  • The new claim priority rules could impact the financial risk and recovery for various parties involved in public works projects.

Rights affected

  • Access to information — The ability to see public records and government decisions.

Other governance concerns

  • Government transparency
  • Standardization of contract terms
  • New administrative dispute resolution process

Primary sources (1)

Secondary sources (3)