Alberta Record

· Order in Council / Prompt Payment and Adjudication Regulation Amendment · in-force

Order in Council Amends Prompt Payment Adjudication Regulation

This Order in Council amends the Prompt Payment and Adjudication Regulation (AR 23/2022) to include regulated professional engineers and architects under the Act. It allows these professionals to waive their lien rights, which in turn waive

Moderate impactCentralization of powerThe public, directly

What changed

  • Section 35 of the Prompt Payment and Adjudication Regulation (AR 23/2022) is repealed and replaced. It now prescribes regulated professional engineers and architects as classes of professionals to whom the Prompt Payment and Construction Lien Act applies when contracted in a consultative capacity for an improvement.
  • A new section 35.1 is added, allowing these prescribed professional classes to waive their right to enforce a lien created under section 6 of the Act in a contract or subcontract.
  • If a contract or subcontract includes such a waiver, the owner's obligation to retain any amount required under sections 18 and 23 of the Act is deemed to have been waived.

Why it matters

  • Establishes a specific legal framework for regulated professional engineers and architects under the Prompt Payment and Construction Lien Act.
  • Introduces a mechanism for these professionals to contractually waive their lien rights, altering their legal recourse for payment.
  • Modifies property owners' financial obligations by linking the professional's lien waiver to the waiver of owner retention requirements.
  • Shifts aspects of financial risk and security within construction contracts involving these professional services.

Other governance concerns

  • Changes to the legal rights and obligations of regulated professional engineers and architects.
  • Alteration of financial security mechanisms for professionals in construction contracts.
  • Impact on owner's financial retention obligations in construction projects.
  • Potential shifts in risk allocation between owners and professionals.

Primary sources (1)

Secondary sources (3)