What Alberta’s Prompt Payment Legislation Means for Contractors and Homeowners

Intro

In 2022, Alberta brought in the Prompt Payment and Construction Lien Act to fix a long-standing problem in construction: slow or delayed payments. Since then, the rules have been updated and refined, but the goal hasn’t changed — making sure contractors, subcontractors, and suppliers get paid on time, and giving clients a clear, fair system for managing invoices.

At Logic Control Ltd., we want to explain what this law means in plain language, and why it benefits both the people doing the work and the people paying for it.

⏱ The Basics of Prompt Payment

Here’s what the law boils down to:

• 28 Days to Pay: Once a contractor sends a proper invoice, payment must be made within 28 days.

• 7 Days for Subcontractors: Contractors then have 7 days to pay their subs.

• If There’s a Dispute: A notice must be sent within 14 days saying why payment isn’t being made.

• Fast-Track Disputes: Instead of dragging through court, the law includes a quick adjudication process to settle issues.

⚡ Why It’s Good for Contractors

For companies like Logic Control Ltd., prompt payment means:

• Steady cash flow to keep projects moving.

• Less stress about chasing down payments.

• More trust when working with larger builders or industrial clients.

🏠 Why It’s Good for Homeowners and Businesses

It’s not just contractors who benefit — clients do too:

• Transparency: You know exactly when payments are due.

• Fewer Delays: Projects are less likely to stall because people are waiting for money.

• Professionalism: Working with licensed trades who follow the law gives peace of mind.

🔌 What It Means for Our Clients

At Logic Control Ltd., we align our contracts and billing practices with Alberta’s prompt payment rules. That means:

• Clear, simple invoices.

• Payment timelines that follow the law.

• Confidence that your project is managed properly, from the first permit to the final inspection.

Conclusion

Prompt payment isn’t just a law on paper — it’s about trust, fairness, and keeping projects on track. Whether you’re a homeowner planning an upgrade or a business managing a larger job, these rules help protect everyone involved.

👉 Want an electrical contractor who plays by the rules? Contact Logic Control Ltd. today and let’s build something great together.