Saskatchewan announces Builders’ Lien (Prompt Payment) Act

The Saskatchewan government has announced that on March 1, 2022, The province’s Builders’ Lien (Prompt Payment) Amendment Act, 2019 will be proclaimed into force. This new provincial legislation is intended to define the rights and obligations of owners, developers, contractors, and subcontractors by establishing reasonable payment timelines for construction projects and introducing an interim adjudication process as an alternative to arbitration and litigation.

The payment timelines will mandate that owners and developers provide payment within 28 days of receiving a proper invoice for construction services. However there has been some concern from the retail community regarding the “pay now, dispute later” requirements over disputed work. These will be initially argued through the newly established Saskatchewan Construction Dispute Resolution Office, which may not have the necessary qualifications for complicated work.