What Is the Prompt Payment and Construction Lien Act (PPCLA)?

The Prompt Payment and Construction Lien Act (PPCLA) is a new law in the province of Alberta that helps construction contractors and sub-contractors get paid! The law sets a clear timeline for payments:

  • 28 days for general contractors to receive payments
  • 7 days after payment is received by contractors, they must pay their subcontractors

The most important part, is that a “proper invoice” must be issued in order for you to get paid – and Tradesflow is here to help with that!

Did You Know?

The average micro-service tradesperson does not bill out 25-30% of their work because they lost the information or just forgot. Tradesflow gets stuff done!

So What Is A “Proper Invoice”?

A proper invoice is a request for payment that’s in writing and will include the following:

  • The contractor’s name and business address
  • The date of the proper invoice and the period during which the work was done or materials were furnished.
  • A description of the work done
  • The materials used or furnished
  • The amount requested for payment
  • The payment terms are broken down (for work done or materials used)
  • A reference to the agreement which states what work is to be done and materials to be used
  • The name, title and contact information of the person to whom payment is to be sent
  • A statement that the invoice intends to be a proper invoice
  • Any other requirements that may be specified in the contract

When this proper invoice is received by the job owner, there are a few different timelines for payments to remember.

  • If the invoice is from a contractor to a job owner, payment must be made in 28 days.
  • If the invoice is from a sub-contractor to the main contractor, payment must be made in 7 days.
  • If the invoice is from one subcontractor to another subcontractor, payment must be made in 7 days.

The Adjudication Process

The adjudication process is the legal action for making sure that the PPCLA laws are followed. It is a faster and easier process than going to court.

The following are required in writing if contracts are taken to adjudication:

  • Names and addresses of the parties in dispute
  • The nature of the dispute along with a brief description that includes how and when it arose
  • The nature of the redress sought
  • The name of the nomination authority who the party serving the notice intends to submit
  • The name of the adjudicator requested to conduct the adjudication
  • A copy of the notice must be provided to the opposite contracting party as well as the relevant nominating authority (on the same day)
  • A provision in the contract that gives a name to an adjudicator in the event of an adjudicationParties may agree to designate a nominating authority to whom the notice of adjudication must be submitted

There are two common circumstances to be aware of that would mean a party is unable to dispute an adjudication:

  • If an action in court is commenced on or before the date the notice was delivered
  • After the contract or subcontract is completed, unless the parties both agree to adjudicate

Tradesflow — Field Service Software

 Whether you’re just starting your new home services trade company or have been in business for years and are looking for software that is simple and affordable, Tradesflow is here to help! Complicated software can leave users frustrated and paying for features they don’t need.

Tradesflow automatically creates invoices that work for the PPCLA, and tracks them so you meet the PPCLA timelines to get paid!

  • 1-Click auto-filled invoicing
  • Invoice your customers
  • Receive invoices from your workers
  • Compliant with the Alberta PPCLA Law, effective August 29, 2022

Every member of your team can use Tradesflow. From those who use computers every day, to those who don’t. Tradesflow is also for workers who could have reading or language challenges that stop them from using other software programs. Getting you  PPCLA ready will not only help you get paid but will benefit your whole business. The PPCLA will apply to all construction industry sectors, helping contractors and subcontractors get paid on time. If you’re interested in learning more about PPCLA, contact our team of experts today!