For those in the Alberta construction industry, 2025 was a year of rapid legislative evolution in construction law. Between the expansion of prompt payment to the public sector and new exemptions for design professionals, the landscape for Alberta construction law has changed significantly.

To support your planning for the year ahead, here is a straightforward guide to the 2026 construction law environment.

The April 2025 Updates: Expanding the Scope (Bill 30)

Effective April 1, 2025, the Service Alberta Statutes Amendment Act, 2024 (Bill 30) brought the Public Works Act (Alberta) (PWA) in line with the private sector’s prompt payment standards.

• Public Works Join Prompt Payment: The construction adjudication process and prompt payment rules now officially apply to most provincial government projects.
• The 31-Day Invoicing Rule: Contractors on PWA projects must now issue a “proper invoice” to the Crown at least every 31 days.
• Concurrent Proceedings: Parties no longer have to stop an adjudication just because a court action has started. You can now pursue both simultaneously, preventing parties from using “litigation as a stall tactic.”
• New Adjudication Window: You now have until 30 days after the date of final payment to initiate an adjudication, a significant extension from the previous “before contract completion” deadline.

The November 2025 Updates: PPAR Clarification

While the April 2025 amendments expanded the scope of the legislation, the November 26, 2025, updates introduced specific regulatory changes for regulated professionals through the Prompt Payment and Adjudication Regulation (PPAR).

• The Professional Holdback Waiver: This is the most critical update for engineers and architects. It clarifies that when a regulated professional waives their lien rights under the PPCLA, they are also automatically waiving their right to the statutory holdback.
• Owner Obligations: If an engineer or architect elects this waiver, the owner is officially released from the obligation to maintain the 10% major and minor lien funds for those specific services.
• A New Nominating Authority: In late 2025, Alberta Dispute Adjudication for Construction Contracts (ADACC) was designated as a new Nominating Authority, providing more options for dispute resolution for contractors and professionals.

The 2026 “Proper Invoice” Standard

Regardless of when the work started, your path to payment depends on the “proper invoice.” In Alberta, a proper invoice must include:

1. Contractor’s name and business address.
2. Date of the invoice and the period of work.
3. A description of the work/materials and identifying authority (contract details).
4. The amount requested and broken-down payment terms.
5. Name, title, and contact info of the payee.
6. A mandatory statement that the document is intended to be a “proper invoice.”

Strategic Takeaways for 2026

• For Professionals: Before opting out of lien rights to get 100% of your fee upfront, consider the risk. If the owner defaults, you have traded your strongest security (the lien) for immediate cash flow.
• For Owners: Your statutory holdback calculations must now account for whether your consultants have signed a valid waiver.
• For Contractors: Ensure your subcontracts reflect the new Bill 30 Alberta updates, particularly the 7-day turnaround for payments once you receive funds from the owner.

As Alberta’s construction law framework continues to evolve, staying on top of deadlines and invoicing requirements helps reduce the risk of project disruptions. If you have questions about construction law, please contact:

• Peewara Sapsuwan at peewara.sapsuwan@nicol.law 
• Angelo Merani at angelo.merani@nicol.law