The Builders Lien Amendment Act of 2019 will ensure contractors and subcontractors receive prompt payment for their services. The new legislation commencement will be on March 1st, 2022 which will provide protection and define the rights of owners, developers, contractors and subcontractors. Similar amendments have been introduced in other jurisdictions across Canada including Ontario and Nova Scotia.
"This government is committed to supporting the construction industry," Justice Minister and Attorney General Gordon Wyant said. "These changes will ensure the prompt payment of contractors and subcontractors and will enable parties to resolve issues quickly and without added costs - which in turn will help projects move forward without delays."
The Act gives owners and developers twenty-eight days to provide payment to their contractors after receiving their invoices for services. And in turn, the contractor then has seven days to provide payment to subcontractors after receiving payment from the owner or developer.
What if something goes wrong? How can a resolution be accommodated quickly to all parties involved without going to court? If a payor disputes an invoice, they must give written notice of non-payment to the payee. A new adjudication process under the Act will provide parties to seek interim resolution for any payment disputes. It will be overseen by the Saskatchewan Construction Dispute Resolution Office (SCDRO), a not-for-profit corporation designated by the Minister to act as the official Adjudication Authority. The SCDRO will be working with ADR Institute Inc - Alternative Dispute Resolution who will be providing trained adjudicators under the new act to resolve disputes in a timely manner.