Construction Lien Act

Province of Alberta
PROMPT PAYMENT AND

CONSTRUCTION LIEN ACT
Revised Statutes of Alberta 2000

Chapter P-26.4
Current as of November 16, 2022
Office Consolidation
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Note
All persons making use of this consolidation are reminded that it has no
legislative sanction, that amendments have been embodied for convenience of
reference only. The official Statutes and Regulations should be consulted for all
purposes of interpreting and applying the law.
Regulations
The following is a list of the regulations made under the Prompt Payment and
Construction Lien Act that are filed as Alberta Regulations under the Regulations
Act
Alta. Reg. Amendments
Prompt Payment and Construction

Lien Act
Prompt Payment and Adjudication.................23/2022
Prompt Payment and Construction
Lien Forms ...............................................51/2002 ........... 108/2004, 217/2009,
164/2010, 227/2011,
130/2012, 124/2015,
114/2020, 46/2021,
22/2022, 218/2022
PROMPT PAYMENT
AND CONSTRUCTION LIEN ACT
Chapter P-26.4
Table of Contents
Part 1
General
1 Definitions
1.1 Application
2 Substantial performance
3 Work not completed
4 Valuation of work done
Part 2
Creation of Lien
5 Waiver prohibited
6 Creation of lien
7 Highways and irrigation districts
8 Limitation of lien
9 Furnishing material
10 Date of lien
11 Priorities
12 Advancing of money
13 Priority for wages
14 Land owned by married person or adult interdependent partner
15 Liens on lease or life estate
16 Insurance money
17 Removal of material
18 Major lien fund
19 Certificate of substantial performance
20 Posting or provision of certificate of substantial performance
21 Money required to be retained
22 Money held in trust
23 Minor lien fund
24 Major lien fund and minor lien fund
1
PROMPT PAYMENT RSA 2000
AND CONSTRUCTION LIEN ACT Chapter P-26.4
24.1 Payment of amount retained under sections 18, 21 and 23

25 Liability of owner
26 Holdback by mortgagee
27 Payment from lien fund
28 Payment where contract price not money
29 Payment to lienholder by owner, etc.
30 Assignment
31 Merging of lien
32 Proving claim
Part 3
Prompt Payment
32.1 Proper invoice
32.2 Payment deadline — owner to contractor
32.3 Payment deadlines — contractor to subcontractor
32.4 Notice of non-payment
32.5 Payment deadlines — subcontractor to subcontractor
32.6 Interest on late payments
32.7 No effect on wages
Part 4
Right to Information
33 Inspection of contract or subcontract
Part 5
Dispute Adjudication
33.1 Definitions
33.2 Nominating Authority
33.3 Minister as interim Nominating Authority
33.4 Adjudication of dispute
33.5 Adjudication procedures
33.6 Hearing and determination by adjudicator
33.61 Registration and enforcement
33.7 Judicial review
33.8 Limitation
33.9 Immunity
34 Registration of lien
35 Forms for registering lien
Part 6
Registration
36 Estate or interest in minerals
37 Validity of lien
2
AND CONSTRUCTION LIEN ACT Chapter P-26.4
38 Reinstatement of lien
39 Change of address
40 Wrongful registration
41 Time for registration
Part 7
Expiry and Discharge of Lien
42 Expiry of unregistered lien
43 Expiry of registered lien
44 Lien as charge against money
45 Notice to commence an action
46 Continuation of lien
47 Cancellation of lien
48 Lien removed
Part 8
Enforcement of Liens
49 Enforcement of lien
50 Deemed parties to proceedings
51 Service of statement of claim
52 Time for filing defence
53 Pre-trial application
54 Appointment of receiver and trustee
55 Uncompleted or abandoned contract
56 Consolidation of actions
57 Entering action for trial
58 Adjudication of claims
59 Failure to establish valid lien
60 Payment of sale proceeds into court
61 Application of money realized
62 Order for removal and sale of structure
63 Enforcement of judgment
64 Alberta Rules of Court
65 Proof of claim after proceedings
66 Appeal
67 Service of documents
68 Fees
69 Costs
Part 9
Regulations and Transitional Provisions
70 Regulations
71 Application of former Acts
3
Section 1 AND CONSTRUCTION LIEN ACT Chapter P-26.4
72-74 Transitional
HER MAJESTY, by and with the advice and consent of the

Legislative Assembly of Alberta, enacts as follows:
Part 1
General
Definitions
1 In this Act,
(a) “certificate of substantial performance” means a

certificate of substantial performance issued under section
19;
(b) “contractor” means a person contracting with or employed

directly by an owner or the owner’s agent to do work on
or to furnish materials for an improvement, but does not
include a labourer;
(c) “court” means the Court of King’s Bench;
(d) “improvement” means anything constructed, erected,

built, placed, dug or drilled, or intended to be constructed,
erected, built, placed, dug or drilled, on or in land except a
thing that is neither affixed to the land nor intended to be
or become part of the land;
(e) “labourer” means a person employed for wages in any

kind of labour whether employed under a contract of
service or not;
(f) “lienholder” means a person who has a lien arising under

this Act;
(g) “lien fund” means, as the case may be, the major lien
fund, the minor lien fund or both the major lien fund and
the minor lien fund;
(h) “major lien fund” means
(i) where a certificate of substantial performance is not

issued, the amount required to be retained under
section 18(1), (1.1) or (1.2) plus any amount payable
under the contract
(A) that is over and above the 10% referred to in

section 18(1), (1.1) or (1.2), and
4
(B) that has not been paid by the owner in good

faith while there is no lien registered;
(ii) where a certificate of substantial performance is

issued, the amount required to be retained under
section 18(1), (1.1) or (1.2) plus any amount payable
under the contract
(A) that is over and above the 10% referred to in

section 18(1), (1.1) or (1.2), and
(B) that, with respect to any work done or materials

furnished before the date of issue of the
certificate of substantial performance, has not
been paid by the owner in good faith while there
is no lien registered;
(i) “minor lien fund” means the amount required to be

retained under section 23(1), (1.1) or (1.2) plus any
amount payable under the contract
(i) that is over and above the 10% referred to in section

23(1), (1.1) or (1.2), and
(ii) that, with respect to any work done or materials

furnished on and after the date of issue of a
certificate of substantial performance, has not been
paid by the owner in good faith while there is no lien
registered;
(j) “owner” means a person having an estate or interest in

land at whose request, express or implied, and
(i) on whose credit,
(ii) on whose behalf,
(iii) with whose privity and consent, or
(iv) for whose direct benefit,
work is done on or material is furnished for an

improvement to the land and includes all persons claiming
under the owner whose rights are acquired after the
commencement of the work or the furnishing of the
material;
(k) “prescribed” means prescribed by the regulations;
5
Section 1.1 AND CONSTRUCTION LIEN ACT Chapter P-26.4
(l) “registered lienholder” means a lienholder who has

registered a statement of lien in the appropriate land titles
office and includes a lienholder who has registered a
statement of lien that has been removed pursuant to
section 27 or 48(1);
(m) “Registrar” means the Registrar of Land Titles;
(n) “subcontractor” means a person other than
(i) a labourer,
(ii) a person engaged only in furnishing materials, or
(iii) a person engaged only in the performance of

services,
who is not a contractor but is contracted with or employed

under a contract;
(o) “wages” means money earned by a labourer for work

done, whether by time or as piece-work or otherwise;
(p) “work” includes the performance of services on the

improvement.
RSA 2000 cB-7 s1;2001 c20 s2;2006 c21 s26;2020 c30 s4;
AR 217/2022
Application
1.1(1) This Act or a provision of this Act may, in accordance with
the regulations, apply to a prescribed class of professionals acting
in a consultative capacity.
(2) This Act does not apply in respect of
(a) public works as defined in the Public Works Act,
(b) agreements to finance and undertake an improvement in

which either of the following is a party:
(i) the Crown in right of Alberta;
(ii) a provincial corporation as defined in the Financial

Administration Act that is an agent of the Crown in
right of Alberta,
and
(c) any other agreement, entity, undertaking or work or class

of agreements, entities, undertakings or works as may be
prescribed for the purposes of this section.
6
(3) Subject to the regulations, this Act does not apply in respect of
a prescribed person or entity, whether incorporated or not, that
enters into a prescribed project agreement to finance and undertake
an improvement or to a prescribed class of such persons, entities or
project agreements.
2020 c30 s4.1
Substantial performance
2 For the purposes of this Act, a contract or a subcontract is
substantially performed
(a) when the work under a contract or a subcontract or a

substantial part of it is ready for use or is being used for
the purpose intended, and
(b) when the work to be done under the contract or

subcontract is capable of completion or correction at a
cost of not more than
(i) 3% of the first $500 000 of the contract or

subcontract price,
(ii) 2% of the next $500 000 of the contract or

subcontract price, and
(iii) 1% of the balance of the contract or subcontract

price.
RSA 1980 cB-12 s2;1985 c14 s3
Work not completed

3 For the purposes of this Act, if
(a) the work under a contract or a subcontract or a substantial

part of it is ready for use or is being used for the purpose
intended, and
(b) the work under a contract or a subcontract cannot be

completed expeditiously for reasons beyond the control of
the contractor or the subcontractor,
the value of the work to be completed or materials to be furnished

is to be deducted from the contract price in determining substantial
performance.
1985 c14 s3
Valuation of work done

4 For the purposes of this Act, the value of the work actually done
and materials actually furnished shall be calculated on the basis of
(a) the contract price, or
7
(b) the actual value of the work done and materials furnished,
if there is not a specific contract price.
1985 c14 s3
Part 2
Creation of Lien
Waiver prohibited
5 An agreement by any person that this Act does not apply or that
the remedies provided by it are not to be available for the person’s
benefit is against public policy and void.
RSA 1980 cB-12 s3
Creation of lien
6(1) Subject to subsection (2), a person who
(a) does or causes to be done any work on or in respect of an

improvement, or
(b) furnishes any material to be used in or in respect of an

improvement,
for an owner, contractor or subcontractor has, for so much of the

price of the work or material as remains due to the person, a lien on
the estate or interest of the owner in the land in respect of which
the improvement is being made.
(2) When work is done or materials are furnished
(a) preparatory to,
(b) in connection with, or
(c) for an abandonment operation in connection with,
the recovery of a mineral, then, notwithstanding that a person

holding a particular estate or interest in the mineral concerned has
not requested the work to be done or the material to be furnished,
the lien given by subsection (1) attaches to all estates and interests
in the mineral concerned, other than the estate in fee simple in the
mines and minerals, unless the person holding the estate in fee
simple in the mines and minerals has expressly requested the work
or the furnishing of material, in which case the lien also attaches to
the estate in fee simple in the mines and minerals but not to that
person’s estate, if any, in the rest of the land.
(3) A lien attaching to an estate or interest in mines and minerals

also attaches to the minerals when severed from the land.
8
(4) For the purposes of this Act, a person who rents equipment to
an owner, contractor or subcontractor is, while the equipment is on
the contract site or in the immediate vicinity of the contract site,
deemed to have performed a service and has a lien for reasonable
and just rental of the equipment while it is used or is reasonably
required to be available for the purpose of the work.
RSA 1980 cB-12 s4;1985 c14 s4
Highways and irrigation districts

7(1) No lien exists with respect to a public highway or for any
work or improvement caused to be done on it by a municipal
corporation.
(2) No lien exists with respect to land held by an irrigation district

or for any work or improvement caused to be done by an irrigation
district.
RSA 1980 cB-12 s5;1999 cI-11.7 s214
Limitation of lien
8(1) When the same lien attaches to estates or interests in more
than one lot in respect of a separate improvement on each such lot,
the lien does not apply so as to make the owner of any one lot
liable in respect of that lot for a sum in excess of the price of the
work done or material furnished in respect of the improvement on
the lot less a proportionate share of any money paid to the person
claiming the lien in respect of the work done on or the material
furnished for all the lots to which the lien attaches.
(2) In this section, “lot” means a lot, block or parcel.

RSA 1980 cB-12 s6
Furnishing material
9(1) Material is considered to be furnished to be used within the
meaning of this Act when it is delivered either on the land on
which it is to be used or on such land or in such place in the
immediate vicinity of that land as is designated by the owner or the
owner’s agent or by the contractor or the subcontractor.
(2) Notwithstanding that material to be used in an improvement

may not have been delivered in strict accordance with subsection
(1), if the material is incorporated in the improvement the person
furnishing the material has a lien as set out in section 6.
RSA 1980 cB-12 s7
Date of lien
10 The lien created by this Act arises when the work is begun or
the first material is furnished.
RSA 1980 cB-12 s8
9
Priorities
11(1) A lien has priority over all judgments, executions,
assignments, attachments, garnishments and receiving orders
recovered, issued or made after the lien arises.
(2) Notwithstanding subsection (1), a payment made pursuant to

an assignment, attachment, garnishment or receiving order that is
paid, before a lien is registered, to a person for whose benefit the
assignment, attachment, garnishment or receiving order is made or
issued, takes priority over the lien.
(3) Notwithstanding subsection (2), no judgment, execution,

assignment, attachment, garnishment or receiving order shall affect
the amount required to be retained under sections 18(1), (1.1) or
(1.2) and 23(1), (1.1) or (1.2).
(4) A registered mortgage or a mortgage registered by way of a

caveat has priority over a lien to the extent of the mortgage money
in good faith secured or advanced in money prior to the registration
of the statement of lien.
(5) Advances or payments made under a mortgage after a

statement of lien has been registered rank after the lien, but a
mortgagee who has applied mortgage money in payment of a
statement of lien that has been registered is subrogated to the rights
and priority of the lienholder who has been so paid to the extent of
the money so applied.
(6) An agreement for sale of land in respect of which a caveat has

been filed and any money in good faith secured or payable under
the agreement has the same priority over a lien as is provided for a
mortgage and mortgage money in subsections (1) and (2), and for
the purposes of this Act,
(a) the seller is deemed to be a mortgagee, and
(b) any money in good faith secured and payable under such
an agreement is deemed to be mortgage money in good
faith secured or advanced.
RSA 2000 cB-7 s11;2001 c20 s3;2020 c30 s6
Advancing of money
12 Where
(a) a search is made of a certificate of title,
(b) at the time of the search there is not any statement of lien
endorsed on that certificate of title, and
10
(c) on the day that search is made, in reliance on that search,
(i) mortgage money is advanced under a mortgage

registered against that certificate of title, or
(ii) money is paid under a contract or subcontract for

work done or materials furnished in respect of the
land for which the certificate of title was issued,
that money is deemed to have been advanced before the

registration of any statement of lien not disclosed by that search
notwithstanding that a statement of lien was registered against that
certificate of title on the day that the search was made.
1985 c14 s6
Priority for wages

13(1) A lien for the wages of a labourer has priority, to the extent
of 6 weeks’ wages, over all claims on that portion of the amount
retained as required by section 18 or 23, as the case may be, to
which the contractor or subcontractor through whom the lien is
derived is entitled, and all such labourers rank without preference.
(2) Any device by an owner, contractor or subcontractor to defeat

the priority given by this Act to a labourer for the labourer’s wages
is against public policy and void.
RSA 1980 cB-12 s10;1985 c14 s7
Land owned by married person or adult interdependent partner

14(1) When work is done or material is furnished in respect of
land in which a married person or an adult interdependent partner
has an estate or interest, if the work is done or the material is
furnished with the privity of the spouse of the married person or the
other adult interdependent partner then, for the purposes of this
Act, the spouse or other adult interdependent partner is
conclusively presumed to be acting as the agent of the married
person or the adult interdependent partner as well as for himself or
herself.
(2) The presumption arising under subsection (1) applies only in

respect of that part of the work done or portion of the materials
furnished before the person doing the work or furnishing the
materials has had actual notice that the spouse or the other adult
interdependent partner is not the agent of the married person or the
adult interdependent partner who has an estate or interest in the
land.
RSA 2000 cB-7 s14;2002 cA-4.5 s21
11
Liens on lease or life estate

15(1) When the estate on which a lien attaches is a freehold estate
for a life or lives or a leasehold estate then, if the person doing the
work or furnishing the material gives to the person holding the fee
simple, or that person’s agent, notice in writing of the work to be
done or materials to be furnished, the lien also attaches to the estate
in fee simple unless the person holding that estate, or that person’s
agent, within 5 days after the receipt of the notice, gives notice that
the person holding that estate will not be responsible for the doing
of the work or the furnishing of the materials.
(2) When the estate on which a lien attaches is leasehold, no

forfeiture or cancellation of a lease, except for non-payment of
rent, is effective to deprive a lienholder of the benefit of the lien,
but the lienholder may, in order to avoid forfeiture or termination
of the lease for non-payment of rent, pay any rent due or accruing
due on the lease and continue the lease to its term and the sum so
paid may be added to the claim of the lienholder.
(3) This section applies in respect of land other than minerals.

RSA 1980 cB-12 s12
Insurance money
16 If any improvement on land in respect of which a lien attaches
is wholly or partly destroyed, any money received or receivable by
the owner by reason of any insurance on the land is subject to all
claims for liens to the same extent as if the money had been
realized by a sale of the land in proceedings to enforce a lien.
RSA 1980 cB-12 s13
Removal of material
17(1) During the continuance of a lien no part of the material
giving rise to the lien shall be removed to the prejudice of the lien.
(2) Material actually delivered and to be used for an improvement
(a) is subject to a charge in favour of the person furnishing

the material until incorporated in the improvement, and
(b) is not subject to execution or other process to enforce a

debt other than a debt for the purchase of the material due
to the person furnishing the material.
RSA 1980 cB-12 s14
Major lien fund

18(1) Irrespective of whether a contract provides for instalment
payments or payment on completion of the contract, an owner who
is liable on a contract under which a lien may arise shall, when
making payment on the contract, retain an amount equal to 10% of
12
the value of the work actually done and materials actually

furnished for a period of 60 days from
(a) the date of issue of a certificate of substantial performance

of the contract, in a case where a certificate of substantial
performance is issued, or
(b) the date of completion of the contract, in a case where a

certificate of substantial performance is not issued.
(1.1) Notwithstanding subsection (1) and irrespective of whether a

contract provides for instalment payments or payment on
completion of the contract, an owner who is liable on a contract
with respect to improvements to an oil or gas well or to an oil or
gas well site under which a lien may arise shall, when making
payment on the contract, retain an amount equal to 10% of the
value of the work actually done and materials actually furnished for
a period of 90 days from


(1.2) Notwithstanding subsection (1) and irrespective of whether a

contract provides for instalment payments or payment on
completion of the contract, an owner who is liable on a contract
with respect to improvements primarily related to the furnishing of
concrete as a material or work done in relation to concrete under
which a lien may arise shall, when making payment on the
contract, retain an amount equal to 10% of the value of the work
actually done and materials actually furnished for a period of 90
days from


(2) In addition to the amount retained under subsection (1), (1.1)

or (1.2), the owner shall also retain, during any time while a lien is
registered, any amount payable under the contract that has not been
paid under the contract that is over and above the 10% referred to
in subsection (1), (1.1) or (1.2).
13
(3) Except as provided in section 13(1), when a lien is claimed by

a person other than the contractor, it does not attach so as to make
the major lien fund liable for a sum greater than the total of
(a) 10% of the value of the work actually done or materials

actually furnished by the contractor or subcontractor for
whom and at whose request the work was done or the
materials were supplied giving rise to the claim of lien,
and
(b) any additional sum due and owing but unpaid to that
contractor or subcontractor for work done or materials
furnished.
(4) Except as provided in section 13(1), when, in respect of liens to

which this section applies, there is more than one lien claim arising
from work done or materials furnished for and at the request of the
contractor or the same subcontractor, they do not attach so as to
make the major lien fund liable in their cumulative total for a sum
greater than the total of

actually furnished by the contractor or subcontractor, as
the case may be, and
furnished.
(5) A payment of an amount, other than that required to be

retained under subsection (1), (1.1) or (1.2), that is made in good
faith by an owner or mortgagee to a contractor at a time when there
is not any lien registered is valid, so that the major lien fund is
reduced by the amount of the payment.
(6) If a contractor or subcontractor defaults in completing the

contractor’s or subcontractor’s contract, the major lien fund
(a) shall not, as against a lienholder, be applied to the

completion of the contract or for any purpose other than
the satisfaction of liens, and
(b) when distributed, shall be distributed in the manner

prescribed by section 61.
(7) A person who in good faith underestimates the value of the

work actually done or materials actually furnished at any specific
time and retains the percentage of the value required to be retained
by this section, calculated on that underestimated value, does not
14
lose the protection afforded by this Act if the person provides, for
the satisfaction of liens in accordance with this Act, an amount
equal to the correct amount that should have been retained pursuant
to this section.
RSA 2000 cB-7 s18;2001 c20 s4;2020 c30 ss7,27
Certificate of substantial performance

19(1) Where a contractor is of the opinion that the contractor’s
contract is substantially performed, the contractor may issue and
deliver to the owner a certificate of substantial performance in
respect of the contract.
(2) Where a contractor or a subcontractor is of the opinion that the

subcontractor’s contract is substantially performed, the contractor
or subcontractor may issue and deliver to the owner a certificate of
substantial performance in respect of that subcontractor’s contract.
(3) The certificate of substantial performance shall set out the date
on which the certificate is issued.
1985 c14 s8
Posting or provision of certificate of substantial performance

20(1) A person issuing a certificate of substantial performance
under section 19 shall, within 3 days from the date of issuing the
certificate, ensure that the persons working or furnishing materials
have a reasonable opportunity of seeing the certificate by
(a) posting a signed copy of it in a conspicuous place on the

job site to which the certificate relates, or
(b) providing an electronic copy of the signed certificate in

accordance with the applicable contract or agreement.
(2) Where the person issuing a certificate of substantial

performance fails to comply with this section, that person issuing
the certificate is liable for legal and other costs and damages
incurred by and resulting to a person by reason of the
non-compliance.
RSA 2000 cB-7 s20;2020 c30 s7.1
Money required to be retained

21(1) Notwithstanding section 18(1), if
(a) a certificate of substantial performance is issued for a

contract,
(b) a period of 60 days has expired from the date of issue of

the certificate of substantial performance, and
(c) no lien has been registered,
15
the amount that the owner is required to retain under section 18 is

reduced by 10% of the value of the work actually done and
materials actually furnished under the contract at the date of issue
of the certificate of substantial performance.
(2) Notwithstanding section 18(1), if

subcontract,


materials actually furnished under the subcontract at the date of
issue of the certificate of substantial performance.
(3) Notwithstanding section 18(1.1), if, with respect to

improvements to an oil or gas well or to an oil or gas well site,

contract,


materials actually furnished under the contract at the date of issue
of the certificate of substantial performance.
(4) Notwithstanding section 18(1.1), if, with respect to


subcontract,


16
materials actually furnished under the subcontract at the date of

issue of the certificate of substantial performance.
(4.1) Notwithstanding section 18(1.2), if, with respect to

improvements primarily related to the furnishing of concrete as a
material or work done in relation to concrete,

contract or a subcontract, as the case may be,


materials actually furnished under the contract or the subcontract,
as the case may be, at the date of issue of the certificate of
substantial performance.
RSA 2000 cB-7 s21;2001 c20 s5;2020 c30 ss8,27
Money held in trust

22(1) Where
(a) a certificate of substantial performance is issued, and
(b) a payment is made by the owner after a certificate of

substantial performance is issued
the person who receives the payment, to the extent that the person
owes money to persons who provided work or furnished materials
for the work or materials in respect of which the certificate was
issued, holds that money in trust for the benefit of those persons.
(2) When a person other than a person who received the payment
referred to in subsection (1)
(a) is entitled to the money held in trust under this section,

and
(b) receives payment pursuant to that trust,
the person, to the extent that the person owes money to other
persons who provided work or furnished materials for the work or
materials in respect of which the payment referred to in clause (b)
was made, holds that money in trust for the benefit of those other
persons.
17
(3) A person who is subject to the obligations of a trust established

under this section is released from any obligations of the trust when
that person pays the money to
(a) the person for whom that person holds the money in trust,
or
(b) another person for the purposes of having it paid to the

person for whom the money is held in trust.
1985 c14 s8
Minor lien fund

23(1) When a certificate of substantial performance is issued in
respect of a contract, the owner shall retain for a period of 60 days
from the date of the completion of the contract an amount equal to
10% of the value of the work actually done and materials actually
furnished on or after the date of issue of the certificate of
(1.1) Notwithstanding subsection (1), with respect to

when a certificate of substantial performance is issued in respect of
a contract, the owner shall retain for a period of 90 days from the
date of the completion of the contract an amount equal to 10% of
the value of the work actually done and materials actually
furnished on or after the date of issue of the certificate of

material or work done in relation to concrete, when a certificate of
substantial performance is issued in respect of a contract, the owner
shall retain for a period of 90 days from the date of the completion
of the contract an amount equal to 10% of the value of the work
actually done and materials actually furnished on or after the date
of issue of the certificate of substantial performance.
(2) In addition to the amount retained under subsection (1), (1.1)

or (1.2), the owner shall also retain, during any time while a lien is
registered, any amount payable under the contract that has not been
paid under the contract that is over and above the 10% referred to
in subsection (1), (1.1) or (1.2) for work done and materials
furnished on and after the date of issue of the certificate of
substantial performance of the contract.
(3) Except as provided in section 13(1), when a lien to which this

section applies is claimed by a person other than the contractor, it
does not attach so as to make the minor lien fund liable for a sum
greater than the total of
18

actually furnished on and after the date of issue of the
certificate of substantial performance by the contractor or
subcontractor for whom and at whose request the work
was done or the materials were furnished giving rise to the
claim of lien, and
(4) Except as prescribed in section 13(1) when, in respect of liens

to which this section applies, there is more than one lien claim
arising from work done or materials furnished for and at the request
of the contractor or the same subcontractor, they do not attach so as
to make the minor lien fund liable in their cumulative total for a
sum greater than the total of

actually furnished on and after the date of issue of the
certificate of substantial performance by the contractor or
subcontractor, as the case may be, and
(5) A payment of an amount, other than that required to be

retained under subsection (1), (1.1) or (1.2), that is made in good
faith by an owner or mortgagee to a contractor at a time when there
is not any lien registered is valid, so that the minor lien fund is
reduced by the amount of the payment.
(6) If a contractor or subcontractor defaults in completing the

contractor’s or subcontractor’s contract, the minor lien fund
(a) shall not, as against a lienholder, be applied to the

completion of the contract or for any purpose other than
the satisfaction of liens, and
(b) when distributed, shall be distributed in the manner

prescribed by section 61.
(7) A person who in good faith underestimates the value of the

work actually done or materials actually furnished at any specific
time and retains the percentage of the value required to be retained
by this section, calculated on that underestimated value, does not
19
lose the protection afforded by this Act if the person provides, for
the satisfaction of liens in accordance with this Act, an amount
equal to the correct amount that should have been retained pursuant
to this section.
RSA 2000 cB-7 s23;2001 c20 ss6,27
Major lien fund and minor lien fund

24(1) When a certificate of substantial performance is issued,
(a) any lien arising out of work done or materials furnished

before the date of issue of a certificate of substantial
performance is a charge on the major lien fund, and
(b) any lien arising out of work done or materials furnished

on and after the date of issue of a certificate of substantial
performance of the contract is a charge on the minor lien
fund.
(2) When a minor lien fund does not arise under section 23, any
lien arising out of work done or materials furnished is a charge on
the major lien fund.
RSA 1980 cB-12 s15(4);1985 c14 s8
Payment of amount retained under

sections 18, 21 and 23
24.1(1) Subject to subsection (2), an owner must make a payment
of the amount retained under section 18(1), (1.1) or (1.2), 21 or
23(1), (1.1) or (1.2).
(2) Subsection (1) applies if the following conditions are met:
(a) the contract provides
(i) for a completion schedule that is longer than one year

and for the payment of accrued amounts under
section 18(1), (1.1) or (1.2) or 23(1), (1.1) or (1.2) on
an annual basis, or
(ii) for the payment of amounts accrued under section

18(1), (1.1) or (1.2) or 23(1), (1.1) or (1.2) on a
phased basis specified in the contract;
(b) the contract price at the time the contract is entered into
exceeds the prescribed amount;
(c) as of the payment date, as may be applicable under clause

(a)(i) or (ii),
(i) there are no liens filed in respect of the contract, or
20
(ii) all liens filed in respect of the contract have been

satisfied, discharged or otherwise provided for under
this Act;
(d) any other conditions as may be prescribed.

2020 c30 s10
Liability of owner
25 An owner is not liable under this Act for more than
(a) the total of the major lien fund and the minor lien fund, or
(b) the major lien fund, where a minor lien fund does not
arise under section 23.
RSA 1980 cB-12 s15(5);1985 c14 s8
Holdback by mortgagee
26 A mortgagee authorized by the owner to disburse money
secured by a mortgage may retain the amount required to be
retained by the owner as the person primarily liable on the contract
and the retention by the mortgagee of that amount is deemed to be
a compliance with section 18(1), (1.1) or (1.2) or 23(1), (1.1) or
(1.2), as the case may be, by the owner as the person primarily
liable on the contract.
RSA 2000 cB-7 s26;2001 c20 s7;2020 c30 s11
Payment from lien fund

27(1) On the expiration of 60 days from the day that the contract
is completed, payment of the major lien fund may be validly made
so as to discharge the owner’s liability in respect of all liens that
are a charge on the major lien fund, unless a statement of lien is
registered.
(2) Notwithstanding subsection (1), on the expiration of 60 days
(a) from the date of issue of a certificate of substantial

performance, payment of the major lien fund may be
validly made, and
(b) from the day that the contract is completed, payment of

the minor lien fund may be validly made,

are a charge on the lien fund in respect of which the payment was
made, unless a statement of lien is registered.

improvements to an oil or gas well or to an oil or gas well site, on
the expiration of 90 days from the day that the contract is
completed, payment of the major lien fund may be validly made so
21
as to discharge the owner’s liability in respect of all liens that are a

charge on the major lien fund, unless a statement of lien is
registered.

material or work done in relation to concrete, on the expiration of
90 days from the day that the contract is completed, payment of the
major lien fund may be validly made so as to discharge the owner’s
liability in respect of all liens that are a charge on the major lien
fund, unless a statement of lien is registered.
(2.2) Notwithstanding subsection (2.1), with respect to

improvements to an oil or gas well or to an oil or gas well site, on
the expiration of 90 days

validly made, and
(b) from the day the contract is completed, payment of the

minor lien fund may be validly made,

(2.21) Notwithstanding subsection (2.11), with respect to

material or work done in relation to concrete, on the expiration of
90 days

validly made, and
(b) from the day the contract is completed, payment of the

minor lien fund may be validly made,

(3) When a statement of lien has been registered, the owner or a

mortgagee authorized by the owner to disburse the money secured
by a mortgage may
(a) by interlocutory application in any proceedings that have

been commenced to enforce a lien, or
22
(b) on application in any other case,
give security for or pay into court the amount of the major lien
fund, the minor lien fund, or both, as the case may be.
(4) On an application under subsection (3), notice shall be given as

provided in section 51.
(5) Security given or payment into court under subsection (2)

discharges the owner from any liability in respect of liens and
(a) the security or money when given or paid into court

stands in the place of the land, and
(b) the order shall provide that the liens be removed from the
title to the land concerned.
(6) On an application under subsection (3), the court
(a) may hear and receive any evidence, by affidavit, orally or

otherwise, it considers necessary to determine the proper
amount of the lien fund to be paid into court,
(b) may direct the trial of an issue to determine the amount of

the lien fund to be paid into court, and
(c) may refuse the application if it is of the opinion that the

determination of the amount of the lien fund should be
made at the trial of the action.
RSA 2000 cB-7 s27;2001 c20 s8;2009 c53 s28;2020 c30 ss12,27
Payment where contract price not money

28(1) If a lien becomes a charge on the amount required to be
retained under section 18 or 23 and the contract price is not payable
in money, the owner or the person primarily liable on the contract
shall pay in money the percentage of the value to be retained by the
owner or the person primarily liable on the contract.
(2) When the owner or the person primarily liable on the contract
desires to avail himself or herself of the provisions of section 27
and give security for or pay into court the amount to be retained
and the contract price is not payable in money, the court may, on
application by the owner on any notice, if any, that the court
directs, fix the amount of the security that is to be given or money
that is to be paid into court with respect to the value of the
percentage to be retained.
RSA 1980 cB-12 s19;1985 c14 s11
Payment to lienholder by owner, etc.

29(1) If an owner, mortgagee, contractor or subcontractor
23
(a) gives written notice to
(i) the person liable on the contract or the person’s

agent, and
(ii) the persons liable on any intervening contracts or

their agents,
of the intention of the owner, mortgagee, contractor or

subcontractor to make payment to a person who has a lien
for or on account of a debt due to that person for work
done or materials furnished and for which the person
giving notice is not liable on the contract, and
(b) does not receive from any person to whom a notice was
given under clause (a), or the person’s agent, within 5
days from the day on which the notice was given, an
objection to the making of the payment,
the owner, mortgagee, contractor or subcontractor may, subject to

subsection (2), make the payment and the payment is a payment on
the contract or, in the case of a mortgagee, an advance on the
mortgage, and on the intervening contracts, as the case may be, but
not so as to affect the percentage required to be retained by the
owner under section 18(1), (1.1) or (1.2) or 23(1), (1.1) or (1.2), as
the case may be.
(2) A payment shall not be made under subsection (1) if the person
intending to make the payment receives from any person to whom
a notice was given under subsection (1)(a), or the person’s agent,
an objection to the making of the payment before the payment is
made.
RSA 2000 cB-7 s29;2001 c20 s9;2020 c30 s13
Assignment
30 The right of a lienholder may be assigned in writing and, if not
so assigned, passes on the lienholder’s death to the lienholder’s
personal representative.
RSA 1980 cB-12 s21
Merging of lien
31(1) A lien is not merged, paid, satisfied, prejudiced or destroyed
by
(a) the taking of any security,
(b) the acceptance of a promissory note or bill of exchange,
(c) the taking of any acknowledgment of the claim,
24
(d) the giving of time for payment, or
(e) the taking of proceedings for the recovery of a personal

judgment,
unless the lienholder agrees in writing that such an action is to have

that effect.
(2) If a promissory note or bill of exchange issued in respect of the

claim of a lienholder has been negotiated, the lienholder does not
by that negotiation lose the lienholder’s lien if the lienholder is the
holder of the promissory note or bill of exchange
(a) at the time of beginning proceedings to enforce the lien, or
(b) at the time of proving the lienholder’s claim in

proceedings, when those proceedings are brought by
another lienholder.
RSA 1980 cB-12 s22
Proving claim
32 If the period of credit in respect of a claim has not expired or
if there has been an extension of time for payment of the claim
then, if proceedings are commenced by any other person to enforce
a lien against the same property, the lienholder may, nevertheless,
prove and obtain payment of the lienholder’s claim in those
proceedings as if the period of credit or the extended time had
expired.
RSA 1980 cB-12 s23
Part 3
Prompt Payment
Proper invoice
32.1(1) For the purposes of this Part, “proper invoice” means a
written bill or other request for payment for the work done or
materials furnished in respect of an improvement under a contract
if the written bill or request for payment contains the following
information and, subject to subsection (4), meets any other
requirements as may be specified in the contract:
(a) the contractor’s name and business address;
(b) the date of the proper invoice and the period during which
the work was done or materials were furnished;
(c) information identifying the authority, whether in a written

or verbal contract or otherwise, under which the work was
done or materials were furnished;
25
(d) a description of the work done or materials furnished;
(e) the amount requested for payment and the corresponding

payment terms broken down for the work done or
materials furnished;
(f) the name, title and contact information of the person to

whom the payment is to be sent;
(g) a statement indicating that the invoice provided is

intended to constitute a proper invoice;
(h) any other information that may be prescribed.
(2) A requirement to pay an amount in accordance with this Part is

subject to any requirement to retain an amount according to Part 2.
(3) Subject to subsection (4), a provision in a contract that makes

the giving of a proper invoice conditional on the prior certification
of a person or prior approval of the owner to give the invoice is of
no force or effect.
(4) Subject to the regulations, subsection (3) does not apply to a

provision in a contract that provides for the testing and
commissioning of the improvement or of the work done or
materials furnished under the contract.
(5) A proper invoice may be revised if
(a) the parties to the proper invoice agree to a revision,
(b) the date of the proper invoice is not changed, and
(c) the proper invoice continues to meet the requirements

referred to in subsection (1).
(6) Subject to the regulations, proper invoices must be given to an

owner at least every 31 days unless the contract includes a
provision for the testing and commissioning of the improvement or
of the work done or materials furnished under the contract and the
conditions of testing and commissioning are not met.
2020 c30 s14
Payment deadline — owner to contractor

32.2(1) Subject to subsection (2), an owner who owes money
under a proper invoice must pay the amount payable under a proper
invoice no later than 28 days after receiving the proper invoice.
(2) An owner who disputes a proper invoice may refuse to pay all
or any portion of the amount payable under the proper invoice
26
within the time specified in subsection (1) if, no later than 14 days
after receiving the proper invoice, the owner gives the contractor a
notice of dispute, in the prescribed form and manner, specifying the
amount of the proper invoice that is not being paid and detailing all
the reasons for non-payment.
(3) Subsection (1) continues to apply to any amount payable under

the proper invoice that is not the subject of a notice of dispute
under subsection (2).
2020 c30 s14
Payment deadlines — contractor to subcontractor

32.3(1) Subject to the giving of a notice of non-payment under
subsection (6), a contractor who receives full payment of a proper
invoice within the time specified in section 32.2(1) must, no later
than 7 days after receiving payment, pay each subcontractor the
amount payable to the subcontractor for the work done or materials
furnished under a subcontract with the contractor that were
included in the proper invoice.
(2) Subject to the giving of a notice of non-payment under

subsection (6), if the payment received by the contractor from the
owner is only for a portion of the amount payable under a proper
invoice, the contractor must, no later than 7 days after receiving
payment, pay each subcontractor the amount paid by the owner for
the work done or materials furnished under a subcontract with the
contractor that were included in the proper invoice.
(3) For the purposes of subsection (2), if more than one

subcontractor is entitled to payment, payment must be made in
accordance with the following rules:
(a) if the amount not paid by the owner is specific to the work
done or materials furnished by a particular subcontractor
or subcontractors,
(i) the other subcontractors must be paid, and
(ii) any amount paid by the owner with respect to the

subcontractor or subcontractors who are implicated
in the dispute mentioned in section 32.2(2) must be
paid to the subcontractor or subcontractors on a
proportionate basis, as applicable;
(b) in any other case, all subcontractors must be paid on a

proportionate basis.
(4) Subject to subsection (5) or (6), as the case may be, if the
owner does not pay some or all of the amount payable under a
27
proper invoice within the time specified in section 32.2(1), the

contractor must, no later than 35 days after giving the proper
invoice to the owner, pay each subcontractor the amount payable to
each subcontractor for the work done or materials furnished under
a subcontract with the contractor that were included in the proper
invoice to the extent that the contractor was not paid in full under
subsection (2).
(5) Subsection (4) does not apply in respect of a subcontractor if,

no later than the date specified in subsection (7), the contractor
provides to the subcontractor the following:
(a) a notice of non-payment, in the prescribed form and

manner,
(i) stating that some or all of the amount payable to the

subcontractor is not being paid within the time
specified in subsection (4) due to non-payment by
the owner, and
(ii) specifying the amount not being paid;
(b) an undertaking to refer the matter to adjudication under

Part 5 no later than 21 days after giving the notice to the
subcontractor;
(c) a copy of any notice of dispute given by the owner under

subsection 32.2(2).
(6) A contractor who disputes, in whole or in part, the entitlement

of a subcontractor to payment of an amount under the subcontract
may refuse to pay all or any portion of the amount within the time
specified in subsection (1) or (2), as the case may be, if, no later
than the date specified in subsection (7), the contractor gives to the
subcontractor a notice of non-payment, in the prescribed form and
manner, specifying the amount that is not being paid and detailing
all the reasons for non-payment.
(7) For the purposes of subsections (5) and (6), the contractor must
give notice no later than
(a) 7 days after receiving a notice of dispute from the owner

under subsection 32.2(2), or
(b) if no notice was given by the owner, before the expiry of

the period referred to in subsection (4).
(8) Subsections (1) and (2) apply, with necessary modifications, in

respect of any amount that is the subject of a notice of
28
non-payment under subsection (5), once the amount is paid by the

owner.
2020 c30 s14
Notice of non-payment
32.4(1) Subject to the regulations, a contractor who receives a
notice of dispute under section 32.2(2) must, without delay, advise
its subcontractors of the receipt of that notice.
(2) Subject to the regulations, a subcontractor who receives a

notice of non-payment under section 32.3(6) must, without delay,
advise its subcontractors of the receipt of that notice.
2020 c30 s14
Payment deadlines — subcontractor to subcontractor

32.5(1) Subject to subsection (7), a subcontractor who receives
full payment from a contractor in respect of a proper invoice within
the time specified in section 32.3(1) must, no later than 7 days after
receiving payment, pay each subcontractor the amount payable to
the subcontractor for the work done or materials furnished under a
subcontract between them that were included in the proper invoice.
(2) Subject to the giving of a notice of non-payment under

subsection (7), if the payment received by the subcontractor from
the contractor is only for a portion of the amount payable to the
subcontractor in respect of a proper invoice, the subcontractor
must, no later than 7 days after receiving payment, pay each
subcontractor the amount paid by the contractor for the work done
or materials furnished under a subcontract between the
subcontractor and the other subcontractors that were included in the
proper invoice.
(3) For the purposes of subsection (2), if more than one

subcontractor is entitled to payment, payment must be made in
accordance with the following rules:
(a) if the amount not paid by the contractor is specific to the

work done or materials furnished by a particular
subcontractor or subcontractors,
(i) the other subcontractors must be paid, and
(ii) any amount paid by the owner with respect to the

subcontractor or subcontractors who are implicated
in the dispute mentioned in subsection 32.2(2) must
be paid to the subcontractor or subcontractors on a
proportionate basis, as applicable;
29
(b) in any other case, all subcontractors must be paid on a

proportionate basis.
(4) Subject to subsections (6) and (7), if the contractor does not
pay some or all of the amount payable to a subcontractor in respect
of a proper invoice within the time specified in section 32.3(1), the
subcontractor must, no later than the date specified in subsection
(5), pay each subcontractor the amount payable to each
subcontractor for the work done or materials furnished under a
subcontract with that subcontractor that were included in the proper
invoice to the extent that the subcontractor was not paid in full
under subsection (2).
(5) For the purposes of subsection (4), the subcontractor must pay
the amounts no later than
(a) 7 days after the subcontractor receives payment from the

contractor, or
(b) if no payment is made by the contractor to the

subcontractor, 42 days after the proper invoice was given
to the owner.
(6) Subsection (4) does not apply in respect of a subcontractor if, no

later than the date specified in subsection (8), the subcontractor
required to pay under subsection (4) gives to the other subcontractor,
the following:
(a) a notice of non-payment, in the prescribed form and

manner,
(i) stating that some or all of the amount payable to the

subcontractor is not being paid within the time
specified in subsection (5) due to non-payment by
the contractor, and
(ii) specifying the amount not being paid;
(b) unless the failure of the contractor to pay is as a result of

non-payment by the owner, an undertaking to refer the
matter to adjudication under Part 5 no later than 21 days
after giving the notice to the subcontractor;
(c) a copy of any notices of dispute or non-payment, as the

case may be, received by the subcontractor in relation to
the proper invoice.
(7) A subcontractor who disputes, in whole or in part, the

entitlement of another subcontractor to payment of an amount
under the subcontract may refuse to pay all or any portion of the
30
amount within the time specified in subsection (1) or (2), as the

case may be, if, no later than the date specified in subsection (8),
the subcontractor gives to the other subcontractor a notice of
non-payment, in the prescribed form and manner, specifying the
amount that is not being paid and detailing all the reasons for
non-payment.
(8) For the purposes of subsections (6) and (7), the subcontractor
must give notice no later than
(a) 7 days after receiving a notice of non-payment from the

contractor under section 32.3(5) or (6), or
(b) if no notice was given by the contractor, before the expiry

of the period referred to in subsection (5)(b).
(9) Subsections (1) and (2) apply, with necessary modifications, in

respect of any amount that is the subject of a notice under
subsection (6), once the amount is paid by the contractor.
(10) On the request of a subcontractor who is required to make

payments in accordance with this section, a contractor must, as
soon as possible, provide to the subcontractor confirmation of the
date on which the contractor gave a proper invoice to the owner.
(11) This section applies, with necessary modifications, in respect

of a subcontractor who is entitled to payment in accordance with
this section and any amounts payable by that subcontractor to any
other subcontractor under a subcontract in respect of the work done
or materials furnished.
2020 c30 s14
Interest on late payments

32.6 Interest begins to accrue in accordance with the prescribed
rates on any amounts included in a proper invoice that are unpaid
and due.
2020 c30 s14
No effect on wages
32.7 Nothing in this Part in any way reduces, derogates from or
alters the obligations of a contractor or subcontractor to pay wages
to an employee as provided for by statute, contract or collective
bargaining agreement.
2020 c30 s14
31
Part 4
Right to Information
Inspection of contract or subcontract
33(1) In this section, “applicable person” means a person who
falls under any of the categories of persons specified in subsection
(2).
(2) The following persons, by notice in writing, may at any

reasonable time demand the production for inspection of the
contract and statement of the state of accounts referred to in
subsection (3):
(a) a lienholder;
(b) a beneficiary of a trust;
(c) a contractor or subcontractor currently working under a

contract for an owner, contractor or subcontractor, if
requesting information about a particular project under the
contract.
(3) A demand under subsection (2) may be
(a) of the owner or the owner’s agent, for the contract with
the contractor,
(b) of the contractor,
(i) for the contract with the owner, or
(ii) for the contract with the subcontractor through whom

the applicable person’s claim is derived,
(c) of the subcontractor, for the contract with the contractor

through whom the applicable person’s claim is derived, or
(d) for a statement of the state of accounts between the owner

and contractor or between contractor and subcontractor, as
the case may be, containing all information prescribed.
(4) If, at the time of the demand or within 6 days after the demand
is made under this section, the owner or the owner’s agent, the
contractor or the subcontractor, as the case may be,
(a) does not produce the written contract or statement of the

state of accounts, or
(b) if the contract is not in writing,
32
(i) does not, in writing, inform the person making the

demand of the terms of the contract or the amount
due and unpaid on the contract, or
(ii) knowingly and falsely states the terms of the contract

or the amount due or unpaid on the contract,
then, if the applicable person sustains loss by reason of the refusal,

neglect or false statement, the owner, contractor or subcontractor,
as the case may be, is liable to the applicable person in an action
for the amount of the loss, or in proceedings taken under this Act
for the enforcement of a lienholder’s lien.
(5) An applicable person, by notice in writing, may at any

reasonable time demand of a mortgagee or the mortgagee’s agent
or unpaid vendor or the unpaid vendor’s agent
(a) the terms of any mortgage on the land or any agreement

for sale of the land in respect of which the work is or is to
be done or in respect of which materials are or are to be
furnished, and
(b) a statement showing the amount advanced and the amount

currently due and owing on the mortgage or the amount
owing on the agreement, as the case may be.
(6) If the mortgagee or vendor or the mortgagee’s or vendor’s

agent fails to inform the applicable person within 6 days after the
date of the demand
(a) of the terms of the mortgage or agreement, and
(b) of the amount owing on it,
then, if the applicable person sustains loss by reason of the failure

or any misstatement by the mortgagee or vendor of the terms or
amount owing, the mortgagee or vendor is liable to the applicable
person in an action for the amount of the loss, or in proceedings
taken under this Act for the enforcement of the lienholder’s lien.
(7) The court may on application at any time before or after

proceedings are commenced for the enforcement of the lien make
an order requiring
(a) the owner or the owner’s agent,
(b) the contractor,
(c) a subcontractor,
33
(d) the mortgagee or the mortgagee’s agent, or
(e) the unpaid vendor or the unpaid vendor’s agent,
as the case may be, to produce and allow an applicable person to

inspect any contract, agreement, mortgage, agreement for sale,
statement of the amount advanced or statement of the amount due
and owing, or such other document as the court considers
appropriate, on any terms as to costs that the court considers just.
RSA 2000 cB-7 s33;2009 c53 s28;2020 c30 s16
Part 5
Dispute Adjudication
Definitions
33.1 In this Part,
(a) “adjudication” means construction dispute adjudication

with respect to a prescribed matter;
(b) “adjudicator” means a person who is qualified by a

Nominating Authority as an adjudicator;
(c) “Minister” means the Minister determined under section

16 of the Government Organization Act as the Minister
responsible for this Act;
(d) “Nominating Authority” means a Nominating Authority

designated under section 33.2(1).
2020 c30 s17
Nominating Authority
33.2(1) The Minister may designate one or more entities to act as
a Nominating Authority for the purposes of this Part.
(2) A Nominating Authority must perform the following duties:
(a) qualify persons who meet the prescribed requirements as

adjudicators;
(b) appoint adjudicators for the purposes of this Part;
(c) arrange for the hearing by adjudicators of prescribed

matters for which that Nominating Authority is
responsible;
(d) develop and oversee programs for the training of persons

as adjudicators;
34
(e) establish and maintain a publicly available registry of

adjudicators;
(f) perform any other duties as may be prescribed for the

purposes of this Part.
2020 c30 s17
Minister as interim Nominating Authority

33.3 The Minister may act as a Nominating Authority on an
interim basis for any period during which no entity is designated
under section 33.2(1).
2020 c30 s17
Adjudication of dispute
33.4(1) Provided that no party has commenced an action in court
with respect to a dispute, a party to a contract or subcontract may
refer to adjudication a dispute with the other party to the contract or
subcontract, as the case may be, respecting any prescribed matter in
accordance with this section and the regulations or the procedures
established by the Nominating Authority responsible for that
matter.
(2) An adjudication may not be commenced if the notice of

adjudication is given after the date the contract or subcontract is
completed, unless the parties to the adjudication agree otherwise.
(3) If a party commences an action in court with respect to a

dispute on the same date that the dispute is referred to adjudication
under subsection (1), the adjudicator shall discontinue the
adjudication and the action shall proceed.
2020 c30 s17
Adjudication procedures
33.5(1) An adjudication must be conducted in accordance with the
adjudication procedures set out in the regulations or established by
the responsible Nominating Authority.
(2) Adjudication procedures set out in a contract or subcontract

apply only to the extent that they do not conflict with the
procedures set out by the regulations or established by the
responsible Nominating Authority.
(3) In the event of a conflict between the procedures set out by the
regulations and those established by a Nominating Authority, the
procedures set out by the regulations prevail.
2020 c30 s17
35
Hearing and determination by adjudicator

33.6(1) Subject to subsections (2) and (3), an adjudicator may
hear a dispute regarding any matter prescribed under this Part.
(2) An adjudicator may refer any matter to the court if the

adjudicator does not have the jurisdiction to hear the matter or
where, in the opinion of the adjudicator, the court is the more
appropriate forum for hearing the matter.
(3) An adjudicator may refuse to hear a dispute if, in the opinion of

the adjudicator, the dispute is frivolous or vexatious.
(4) The adjudicator shall issue a written notice of determination

accompanied by the adjudicator’s order, if any, concerning the
matter.
(5) The determination of a matter by the adjudicator is binding on

the parties to the adjudication, except where
(a) a court order is made in respect of the matter,
(b) a party applies for a judicial review of the decision under

section 33.7,
(c) the parties have entered into a written agreement to

appoint an arbitrator under the Arbitration Act, or
(d) the parties have entered into a written agreement that

resolves the matter.
(6) Except in the case of an application for judicial review under

section 33.7, nothing in this Part restricts the authority of the court
or an arbitrator to consider the merits of a matter determined by an
adjudicator.
2020 c30 s17
Registration and enforcement

33.61(1) If a party meets all of the following requirements, the
clerk of the court shall register an adjudicator’s order referred to in
section 33.6(4) as an order of the court:
(a) the order is submitted to the clerk of the court not less
than 30 days after the parties have received the order;
(b) neither party has applied for a judicial review of the

decision under section 33.7;
(c) the parties have not entered into a written agreement to

appoint an arbitrator under the Arbitration Act;
36
(d) the parties have not entered into a written agreement that
resolves the matter;
(e) the additional requirements, if any, set out in the

regulations.
(2) On being registered, the order has, from the date it is

registered, the same effect as if it were an order made by an Alberta
court.
(3) The registration of an order pursuant to subsection (1) may not

be made after the later of the following:
(a) 2 years after the date of the written notice referred to in

section 33.6(4);
(b) if applicable, 2 years after the date of the final

determination of an application for judicial review under
section 33.7, if the application did not result in the
adjudicator’s order being set aside.
(4) A party shall serve written notice on the other party no later
than 10 days after the clerk of the court registers an adjudicator’s
order under subsection (1).
(5) If an order registered under subsection (1) requires that an

amount be paid to a contractor or subcontractor, any related
requirement of the contractor or subcontractor, as the case may be,
to make payment to a subcontractor is deferred pending the
outcome of the enforcement of the order.
2020 c30 s17
Judicial review
33.7 An application for judicial review of a determination of an
adjudicator may be made in accordance with this Part, the
regulations and the Alberta Rules of Court (AR 124/2010).
2020 c30 s17
Limitation
33.8 An application for judicial review of the determination of an
adjudicator shall be filed with the court and served no later than 30
days from the date of the notice of determination.
2020 c30 s17
Immunity
33.9(1) No action or other proceeding lies against a Nominating
Authority, an adjudicator or any employee of a Nominating
Authority for any act done or omitted to be done by the
Nominating Authority, adjudicator or employee, as the case may
37
be, in good faith while exercising any power or performing any

duty under this Part or the regulations.
(2) An adjudicator shall not be compelled to give evidence in an

action or other proceeding in respect of an adjudication conducted
by that adjudicator.
2020 c30 s17
Part 6
Registration
Registration of lien
34(1) A lien may be registered in the land titles office by filing
with the Registrar a statement of lien in the prescribed form.
(2) The statement of lien shall set out
(a) the name and residence of
(i) the lienholder,
(ii) the owner or alleged owner, and
(iii) the person for whom the work was or is being done
or the materials were or are being furnished,
(b) the date when the work was completed or the last
materials were furnished, or if the statement of lien is filed
before the completion of the contract or subcontract, as
the case may be, a statement that the work is not yet
completed or the materials have not yet all been furnished,
(c) a short description of the work done or to be done or of

the materials furnished or to be furnished,
(d) the sum claimed as due or to become due,
(e) a description, sufficient for registration, of the land and

estate or interest in the land to be charged, and
(f) an address for service of the lienholder in Alberta.
(3) A statement of lien shall be signed by the lienholder or the

lienholder’s agent.
(4) In the case of a lien arising in connection with an oil or gas

well or an oil or gas well site it is not necessary to set out in the
statement of lien the name of the owner or alleged owner of the oil
or gas well or the oil or gas well site.
38
(5) When a lienholder desires to register a lien against a railway, it

is a sufficient description of the land to describe it as the land of the
railway company.
(6) The statement of lien shall be verified by an affidavit in the

prescribed form of the lienholder or of the lienholder’s agent or
assignee.
(7) When the statement of lien is made by a corporation, it shall be

verified by the affidavit of an officer or employee of the
corporation or its agent.
(8) When the affidavit is made by a person other than the

lienholder it may be made not only as to the facts within the
personal knowledge of the deponent, but also as to the facts of
which the deponent is informed, if the deponent gives the source of
the deponent’s information and states that the deponent believes the
facts to be true.
RSA 2000 cB-7 s34;2001 c20 s10
Forms for registering lien

35(1) A Registrar shall be supplied with printed forms of
statements of lien and affidavits, in blank, which must be supplied
to every person requesting them and desiring to register a lien.
(2) A Registrar shall decide whether the Registrar’s office is or is

not the appropriate office for the registration of the statement of
lien and shall direct the applicant accordingly.
(3) No lien shall be registered unless the claim or joined claims

amount to or aggregate $700 or more.
(4) The Registrar shall, in accordance with the Land Titles Act,
register the lien as an encumbrance against the estate or interest in
the land affected, or if the land affected has not been registered
under the Land Titles Act, the Registrar shall make a record of the
lien in a book or in any other manner that the Registrar considers
advisable.
RSA 2000 cB-7 s35;2020 c30 s19
Estate or interest in minerals

36(1) When a lien attaches to an estate or interest in minerals held
directly from the Crown in right of Alberta and the estate or
interest
(a) is less than a fee simple estate, and
(b) is not registered under the Land Titles Act,
39
the statement of lien shall be registered with the Minister of Energy

and not with the Registrar and this Act applies to all claims of lien
so registered with the Minister of Energy.
(2) In subsections (3) to (6),
(a) “agreement”, “lessee” and “location” have the meanings

given to them by the Mines and Minerals Act;
(b) “Minister” means the Minister of Energy.
(3) If
(a) a lien is registered against an agreement,
(b) the Minister, as a consequence of a right of lease selection

conferred on the lessee of the agreement, issues one or
more leases for all or part of the location of the
agreement, and
(c) the lien attaches to any part of the location of the

agreement that becomes the location of any lease so
issued,
the registration of the lien shall be continued in respect of each

lease so issued as though the lien referred to it and as though the
lease had been issued prior to the registration of the lien.
(4) If a lien is registered against an agreement and
(a) a transfer of part of the location of the agreement is

registered under Part 6, Division 1 of the Mines and
Minerals Act, a new agreement is issued for the part of the
location so transferred and the lien attaches to the part of
the location so transferred,
(b) the agreement is divided by the Minister into 2 or more

agreements pursuant to that Act and the lien attaches to
any part of the location of the agreement that becomes the
location of a new agreement issued as a consequence of
the division, or
(c) the agreement and one or more other agreements are

consolidated by the Minister into one agreement pursuant
to that Act,
the registration of the lien shall be continued in respect of the new

agreement or the consolidated agreement, as the case may be, as
though the lien referred to it and as though the issuance of the
40
agreement or the consolidation had occurred prior to the

registration of the lien.
(5) When an agreement is reinstated pursuant to section 8(1)(e) of

the Mines and Minerals Act, the agreement is subject to all the liens
registered against the agreement when it was surrendered or
cancelled as though the agreement had not been surrendered or
cancelled.
(6) When the term of an agreement is extended pursuant to section

8(1)(h) of the Mines and Minerals Act after the expiration of the
term, the agreement is subject to all liens registered against the
agreement immediately before the expiration of the term so
extended as though the term had not expired.
RSA 2000 cB-7 s36;2003 c42 s2
Validity of lien
37(1) A substantial compliance with section 34 is sufficient and a
lien shall not be invalidated by failure to comply with any
requirements of section 34 unless, in the opinion of the court, the
owner, contractor, subcontractor, mortgagee or some other person
is prejudiced by the failure.
(2) When, in the opinion of the court, a person is prejudiced by a

failure to comply with section 34, the lien shall be invalidated only
to the extent that the person is prejudiced by the default.
(3) Nothing in this section dispenses with the requirement of

registration of a lien.
RSA 1980 cB-12 s27
Reinstatement of lien
38(1) On an application to the court by a lien claimant whose lien
has been invalidated by an order or judgment for failure to comply
with section 155 or 156 of the Land Titles Act, the court may order
the reinstatement of the lien or make any other order that is just in
the circumstances subject to the order not prejudicing
(a) any rights acquired in good faith for valuable

consideration subsequent to the discharge of the lien at the
land titles office as a result of the order or judgment
invalidating the lien, or
(b) any person who has acted in reliance on
(i) the order or judgment invalidating the lien, or
(ii) the discharge of the lien at the land titles office as a

result of the order or judgment invalidating the lien.
41
(2) In a proceeding under this section, the court may extend any
time limits provided for under this Act as the court considers
proper in the circumstances.
(3) The application shall be served on all persons who by the

records of the land titles office appear to have an interest in the
land in question and on any other persons that the court may direct.
(4) All persons, including lienholders, served with an application

are parties to the proceeding.
(5) A court clerk in the judicial centre in which a proceeding is

begun under this section may grant a certificate of lis pendens to a
lien claimant
(a) who is a party to the proceeding, and
(b) whose lien was invalidated for failure to comply with

section 155 or 156 of the Land Titles Act.
(6) A lien claimant who is granted a certificate of lis pendens

under subsection (5) may cause the certificate of lis pendens to be
registered in the appropriate land titles office.
(7) On receiving
(a) a certificate from a court clerk stating that the proceeding

for which a certificate of lis pendens was granted is
discontinued, or
(b) a withdrawal of a certificate of lis pendens signed by the

person on whose behalf the certificate was registered,
the Registrar shall cancel registration of the certificate of lis

pendens.
(8) No order or judgment shall be made or granted in any action,

including any action commenced before the coming into force of
this section, invalidating a lien for the failure of the statement of
lien to comply with section 155 or 156 of the Land Titles Act.
RSA 2000 cB-7 s38;2009 c53 s28;2011 c14 s2;
2011 c20 s2
Change of address
39(1) A lienholder may change the lienholder’s address for service
within Alberta by delivering to the Registrar a notice of change of
address for service in the prescribed form.
(2) The Registrar shall
42
(a) on receipt of a notice of change of address for service, and
(b) on receipt of the proper fee,
enter the notice of change of address in the day book and make a
memorandum setting out the new address for service on the
registered statement of lien.
RSA 1980 cB-12 s28
Wrongful registration
40 In addition to any other grounds on which the person may be
liable, a person who registers a lien against a particular estate or
interest in land or a particular parcel of land
(a) for an amount grossly in excess of the amount due to the

person or that the person expects to become due to the
person, or
(b) when the person knows or ought reasonably to know that

the person does not have a lien,
is liable for legal and other costs and damages incurred as a result
of it unless that person satisfies the court that the registration of the
lien was made or the amount of the lien was calculated in good
faith and without negligence.
RSA 1980 cB-12 s29;1985 c14 s15
Time for registration

41(1) A lien for materials may be registered at any time within the
period commencing when the lien arises and
(a) subject to clauses (b) and (c), terminating 60 days from

the day that the last of the materials is furnished or the
contract to furnish the materials is abandoned,
(b) with respect to improvements to an oil or gas well or to an

oil or gas well site, terminating 90 days from the day that
the last of the materials is furnished or the contract to
furnish the materials is abandoned, or
(c) with respect to improvements primarily related to the

furnishing of concrete as a material or work done in
relation to concrete, terminating 90 days from the day that
the last of the materials is furnished or the contract to
furnish the materials is abandoned.
(2) A lien for the performance of services may be registered at any

time within the period commencing when the lien arises and
43

the day that the performance of the services is completed
or the contract to provide the services is abandoned,

the performance of the services is completed or the
contract to provide the services is abandoned, or

the performance of the services is completed or the
contract to provide the services is abandoned.
(3) A lien for wages may be registered at any time within the
period commencing when the lien arises and

the day that the work for which the wages are claimed is
completed or abandoned,

the work for which the wages are claimed is completed or
abandoned, or

the work for which the wages are claimed is completed or
abandoned.
(4) In cases not referred to in subsections (1) to (3), a lien in

favour of a contractor or subcontractor may be registered at any
time within the period commencing when the lien arises and

the day the contract or subcontract, as the case may be, is
completed or abandoned,

oil or gas well site, terminating 90 days from the day the
contract or subcontract, as the case may be, is completed
or abandoned, or

relation to concrete, terminating 90 days from the day the
44
contract or subcontract, as the case may be, is completed

or abandoned.
(5) Notwithstanding subsections (1) to (4), the time limited by this

section for registering a lien is not extended by reason only that
something improperly done or omitted to be done in respect of
work done or materials furnished is corrected or done, as the case
may be, at a later date.
RSA 2000 cB-7 s41;2001 c20 s11;2020 c30 ss20,27
Part 7
Expiry and Discharge of Lien
Expiry of unregistered lien

42 If a lien is not registered within the time limited by section 41,
the lien ceases to exist.
RSA 1980 cB-12 s31
Expiry of registered lien

43(1) A lien that has been registered ceases to exist unless, within
180 days from the date it is registered,
(a) an action is commenced under this Act
(i) to realize on the lien, or
(ii) in which the lien may be realized,
and
(b) the lien claimant registers a certificate of lis pendens in

respect of the claimant’s lien in the appropriate land titles
office.
(2) A court clerk in the judicial centre in which an action is begun

may grant a certificate of lis pendens to any lienholder who is a
party to the proceedings.
(3) Any lienholder who is a party to the proceedings may cause a

certificate of lis pendens to be registered in the appropriate land
titles office.
(4) On receiving
(a) a certificate from a court clerk stating that proceedings for

which a certificate of lis pendens was granted are
discontinued, or
45
(b) a withdrawal of a certificate of lis pendens signed by the

person on whose behalf the certificate was registered or
the person’s agent, if the claim was signed by that agent,
the Registrar shall cancel registration of the certificate of lis

pendens.
(5) The Registrar without charge may on the Registrar’s own

initiative, and shall on request, cancel registration of a lien where
the lien has ceased to exist under subsection (1).
RSA 2000 cB-7 s43;2011 c20 s2
Lien as charge against money

44 Notwithstanding section 43, if the court has ordered that a lien
be removed under section 27 or 48(1) the lien, as a charge against
the money paid into court or the security given, does not cease to
exist by reason that
(a) a certificate of lis pendens is not registered in the

appropriate land titles office, or
(b) an action has not been commenced within 180 days from
the date that the lien is registered.
1985 c14 s18
Notice to commence an action

45(1) Notwithstanding section 43 or 44, if an owner or another
person affected by a lien serves written notice on the registered
lienholder to commence an action to realize on the lienholder’s lien
and the registered lienholder does not
(a) commence an action to realize on the lien and pursuant to

that action register in the appropriate land titles office a
certificate of lis pendens, or
(b) where the lienholder is a party to an action commenced by

another registered lienholder to realize on a lien, register
in the appropriate land titles office a certificate of lis
pendens in respect of the lienholder’s lien,
within 30 days from the day that the registered lienholder is served
with the notice, the lien ceases to exist.
(2) Subsection (1) does not apply, with respect to the registration
of a certificate of lis pendens, where
(a) security is given or payment is made into court, and
(b) the lien is removed from the title to the land concerned.
46
(3) Notwithstanding section 67, for the purposes of this section,

service of a notice under subsection (1) shall be made only by
(a) personal service,
(b) single registered mail sent to the address for service set
out in the statement of lien, or
(c) delivery to the address that is the address for service set
out in the statement of lien.
1985 c14 s18
Continuation of lien
46(1) A lien that has continued to exist by reason of registration of
the certificate of lis pendens relating to that lien continues to exist
until
(a) the proceedings are concluded, or
(b) the certificate of lis pendens is discharged,
whichever occurs later.
(2) Notwithstanding subsection (1), if no trial has been held within

2 years from the date of the registration of the certificate of lis
pendens, any interested party may apply to the court to have the
certificate of lis pendens vacated and the lien to which it relates
discharged.
RSA 2000 cB-7 s46;2009 53 s28
Cancellation of lien
47(1) The Registrar shall cancel the registration of a lien either in
whole or in part
(a) on receiving notification in a prescribed form signed by

the lienholder or the lienholder’s agent stating that the lien
has been satisfied in whole or in part, or
(b) on receiving proof satisfactory to the Registrar that a lien

that has been registered has ceased to exist.
(2) The Registrar shall cancel the registration of a lien in part only
on receiving notification in the prescribed form signed by the
lienholder or the lienholder’s agent
(a) stating that the lien has been satisfied in part only, and
(b) describing that part of the land described in the statement

of lien as to which the lien has been satisfied.
47
(3) The Registrar shall cancel the registration of a lien and of any
certificate of lis pendens
(a) on receiving a certified copy of an order or judgment of a

court ordering the cancellation of the registration of a lien,
or
(b) on receiving a certificate from a court clerk stating that

pursuant to an order or judgment of the court
(i) the amount due by an owner in respect of a lien has

been ascertained and paid into court, or
(ii) the land, improvement or material has been sold in

satisfaction of the lien.
RSA 2000 cB-7 s47;2011 c20 s2
Lien removed
48(1) The court may, on application, order that the registration of
a lien be removed from the title to the land concerned
(a) where security is given or payment is made into court for
(i) the amount of the claim,
(ii) the maximum amount for which the lien may

properly attach under section 18(3) or (4) or 23(3) or
(4), or
(iii) such lesser amount as the court determines,
and any costs that the court may fix,
(b) where the relevant lien fund has been paid out under this
Act, or
(c) on any ground not referred to in clause (a) or (b) as the

court considers proper.
(2) Money paid into court or any security given under subsection
(1)
(a) stands in place of the land,
(b) is subject to the claims of the person whose lien has been
removed, and
(c) shall not affect the amount required to be retained under

section 18(1), (1.1) or (1.2) or 23(1), (1.1) or (1.2).
48
(3) At any time following service of an application, a party may

file with the court and serve on the registered lienholder a notice to
prove the lien.
(4) A registered lienholder served with a notice to prove lien shall,

within 15 days from the day of the service of the notice on the
lienholder, file with the court in which the proceedings were
commenced an affidavit providing detailed particulars of the
lienholder’s lien.
(5) A registered lienholder on whom a notice to prove lien is

served and who does not file the lienholder’s affidavit
(a) within 15 days from the day of the service of the notice, or
(b) within any further period that the court may order on
application,
loses the lienholder’s lien.
(6) Any party to the application may question the registered

lienholder on the lienholder’s affidavit filed pursuant to this
section.
RSA 2000 cB-7 s48;2001 c20 s12;2009 c53 s28;2011 c20 s2;
2020 c30 s22
Part 8
Enforcement of Liens
Enforcement of lien
49(1) Proceedings to enforce a lien shall be commenced by a
statement of claim.
(2) Lienholders shall not be named as defendants.
(3) When the party issuing the statement of claim is not the
contractor, the statement of claim shall name as defendants
(a) the owner,
(b) the contractor, and
(c) the holder of any prior registered encumbrance against

whom relief is sought.
(4) When the person issuing the statement of claim is the

contractor, the person shall name as defendants
(a) the owner, and
49
(b) the holder of any prior registered encumbrance against

whom relief is sought.
(5) In this section, “prior registered encumbrance” does not

include a lien.
(6) The procedure in adjudicating on the claims shall be of a

summary character, so far as is possible, having regard to the
amount and nature of the liens in question and the enforcement of
them at the least expense.
RSA 1980 cB-12 s36;1985 c14 s21
Deemed parties to proceedings

50 All persons named as parties in the statement of claim and all
registered lienholders are parties to the proceedings.
1985 c14 s22
Service of statement of claim

51(1) Unless otherwise ordered, the statement of claim shall be
served on
(a) all persons who are parties to the proceedings,
(b) all persons who by the records of the land titles office
appear to have an interest in the land against which the
lien is registered, and
(c) any person not referred to in clauses (a) and (b) that the
court may direct.
(2) The court may on application dispense with service of the

statement of claim on any person subject to those conditions, if
any, that it considers proper.
1985 c14 s22
Time for filing defence

52(1) The time within which a defendant may file a statement of
defence or demand for notice is the period limited for the filing of
defence by the Alberta Rules of Court.
(2) A party not named as a defendant is not required to file a

statement of defence.
(3) At any time following the issuance of the statement of claim, a

party may file with the court and serve on any lienholder a notice to
prove lien in the prescribed form.
(4) A lienholder served with a notice to prove lien shall, within 15

days from the day of the service of the notice on the lienholder, file
50
with the court in which the proceedings were commenced an

affidavit providing detailed particulars of the lienholder’s lien.
(5) A lienholder on whom a notice to prove lien is served and who

does not file the lienholder’s affidavit
(a) within 15 days from the day of the service of the notice, or
(b) within any further period that the court may order on
application,
loses the lienholder’s lien.
(6) Any party to the action may question the lienholder on the
lienholder’s affidavit filed pursuant to this section.
RSA 2000 cB-7 s52;2009 c53 s28;2011 c20 s2
Pre-trial application
53(1) At any time following the expiry of the time limited for
defence, the plaintiff may, and before setting the action down for
trial the plaintiff shall, make a pre-trial application.
(2) The plaintiff shall serve notice of the pre-trial application on all
other parties to the proceedings, at least 10 days before the date of
the application.
(3) On the hearing of the pre-trial application,
(a) if no defence has been filed and no notice to prove lien

has been filed and served, the court may declare the liens
valid and make any further judgment or order that it
considers appropriate,
(b) if defence has been filed, the court may give judgment
declaring valid any liens in respect of which no notice to
prove lien has been filed,
(c) the court may consider the affidavits filed on service of

notice to prove lien and the transcript of any questioning
on them, and may
(i) determine the validity of the liens concerned,
(ii) hear oral evidence, and
(iii) direct that at the trial of the action any particular

issue or issues arising on the application be
determined,
51
(d) the court may make any further order or direction that it
considers necessary or desirable including, among other
things, an order that the property be sold pursuant to this
Act and an order that the action be entered for trial,
(e) the court may order that any lienholder or other party be
given the carriage of the proceedings, and
(f) the court may order that questioning under Part 5 of the
Alberta Rules of Court be conducted in the action, but no
questioning may be conducted without an order of the
court.
RSA 2000 cB-7 s53;2009 c53 s28
Appointment of receiver and trustee

54(1) At any time after a statement of claim has been issued to
enforce a lien, any person interested in the property to which the
lien attaches or that is otherwise affected by the lien may apply to
the court for the appointment of a receiver of the rents and profits
from the property against which the claim of lien is registered, and
the court may order the appointment of a receiver on any terms and
on the giving of any security or without security, as the court
considers appropriate.
(2) At any time after a statement of claim has been issued to

enforce a lien, any person interested in the property to which the
lien attaches or that is otherwise affected by the lien may apply to
the court for the appointment of a trustee and the court may, on the
giving of any security or without security, as the court considers
appropriate, appoint a trustee
(a) with power to manage, sell, mortgage or lease the

property subject to the supervision, direction and
approbation of the court, and
(b) with power, on approval of the court, to complete or

partially complete the improvement.
(3) Mortgage money advanced to the trustee as the result of any of

the powers conferred on the trustee under this section takes priority
over all liens existing at the date of the appointment of the trustee.
(4) Any property directed to be sold under this section may be

offered for sale subject to any mortgage or other charge or
encumbrance if the court so directs.
(5) The net proceeds of any receivership and the proceeds of any
sale made by a trustee under this section shall be paid into court
and are subject to the claims of all lienholders, mortgagees and
52
other parties interested in the property sold as their respective

rights may be determined.
(6) The court shall make all necessary orders for the completion of
the sale, for the vesting of the property in the purchaser and for
possession.
(7) A vesting order under subsection (6) vests the title of the
property free from all liens, encumbrances and interests of any kind
including dower, except in cases where the sale is made subject to
any mortgage, charge, encumbrance or interest.
RSA 1980 cB-12 s40;1985 c14 s24
Uncompleted or abandoned contract

55(1) Subject to subsection (2), a lienholder may enforce the
lienholder’s lien notwithstanding the non-completion or
abandonment of any contract under which that lien arises.
(2) Subsection (1) does not apply in favour of a contractor or

subcontractor whose contract provides that nothing is to be paid
until completion of the contract.
RSA 1980 cB-12 s41
Consolidation of actions
56 If more than one action is commenced to enforce liens in
respect of the same land, the court
(a) may, on the application of any person interested,

consolidate the actions into one action, and
(b) may give the conduct of the consolidated action to any

plaintiff as it considers fit.
RSA 1980 cB-12 s42
Entering action for trial

57 When a defence has been filed and no order is made on the
pre-trial application for the holding of a trial, the plaintiff or any
other party may enter the action for trial.
RSA 1980 cB-12 s43
Adjudication of claims
58 On the trial of the action, the court
(a) shall decide all questions that arise in the trial that are
necessary to be tried in order to dispose completely of the
action and to adjust the rights and liabilities of the parties,
and
(b) shall take all accounts, make all inquiries, give all
directions and do all other things necessary to finally
53
dispose of the action and of all matters, questions and

accounts arising in it and to adjust the rights and liabilities
of and give all necessary relief to all parties.
RSA 1980 cB-12 s44
Failure to establish valid lien

59(1) If a lien claimant fails to establish a valid lien, the claimant
may nevertheless be awarded personal judgment against any party
to the proceedings for any sum that is due to the claimant and that
the claimant might recover in an action against that party.
(2) The court may in its judgment order that the estate or interest
in land that is charged with a lien be sold.
(3) When the court orders a sale, the court may
(a) direct that the sale take place at any time after the
judgment, allowing a reasonable time for advertising,
(b) direct what advertising of the sale is required, and
(c) make all necessary orders and directions for the

completion of the sale and the vesting of the estate or
interest in the purchaser.
(4) The court may direct the sale and removal of any materials.
RSA 1980 cB-12 s45
Payment of sale proceeds into court

60(1) When a sale takes place as provided in section 59, the
money realized from the sale shall be paid into court to the credit of
the action.
(2) On application by the plaintiff or any party, following the

payment of money into court pursuant to subsection (1), the court
shall,
(a) if there is sufficient money realized to satisfy all claims,

direct that the money be paid out of court to the claimants
as they are entitled in respect of their claims, costs and
disbursements, or
(b) if sufficient money is not realized to satisfy all claims,

costs and disbursements, certify the amount of the
deficiency, the names of the persons who are entitled to
share the money in court, the amounts that the various
persons interested are entitled to receive from the money
in court, the persons adjudged to pay any money and any
credits allowed to those persons under this Act.
RSA 1980 cB-12 s46
54
Application of money realized

61(1) When a mortgage or other registered encumbrance is prior
to a lien under this Act, the court may order that in a sale under this
Act
(a) the property be sold subject to the mortgage or

encumbrance, or
(b) the property be sold at an upset price of not less than the
amount secured under the mortgage or encumbrance,
costs, and the costs of the sale.
(2) All money realized from a sale, receivership or trusteeship

under this Act and insurance money to which section 16 applies
shall be paid into court for distribution as provided in this section.
(3) When a sale is made pursuant to subsection (1)(a), the money

in court shall be distributed in the following order:
(a) in paying the costs of those parties to whom costs have

been awarded by the court
(i) of and incidental to the proceedings, and
(ii) of registering and proving the liens;
(b) in paying 6 weeks’ wages, if so much is owing, of all

labourers employed by the owner, contractor or
subcontractor;
(c) in paying the several amounts owing to lienholders other

than the contractor;
(d) in paying the amount owing to the contractor.
(4) When a sale is made pursuant to subsection (1)(b), the money

in court shall be distributed in the following order:
(a) in payment of all amounts due, including costs and costs

of sale, to the holders of mortgages or other registered
encumbrances that are prior to liens under this Act;
(b) in paying the costs of all lienholders
(i) of and incidental to the proceedings, and
(ii) of registering and proving the liens;
55
(c) in paying 6 weeks’ wages, if so much is owing, of all

labourers employed by the owner, contractor or
subcontractor;
(d) in paying the several amounts owing to lienholders other

than the contractor;
(e) in paying the amount owing to the contractor.
(5) Each class of lienholders, as between themselves, rank without

preference for their several amounts and the portion of the money
available for distribution to each class shall be distributed among
the lienholders in that class proportionately according to the
amounts of their respective claims as proved.
(6) If a labourer has more than 6 weeks’ wages owing to the

labourer by a subcontractor, contractor or owner, the court
(a) shall cause the sum additional to 6 weeks’ wages to be

deducted out of any sum actually coming to the
subcontractor, contractor or owner under a distribution
pursuant to subsection (1), and
(b) shall order the sum to be paid to the labourer.

RSA 1980 cB-12 s47
Order for removal and sale of structure

62(1) When the work performed or material furnished in respect
of which the lien arose results in the creation of an improvement
consisting of a structure, erection or building, then notwithstanding
(a) that the structure, erection or building may be affixed to or

has become part of the land, or
(b) section 11,
the court, if of the opinion that having regard to the value of the
improvement and the amount owing on the lien it is proper to do
so, may, on application of the lienholder in proceedings to enforce
the lien or in any other proceedings affecting the lien, order the
structure, erection or building removed and sold and the proceeds
of the sale applied on the lien that arose in respect of the
improvement.
(2) If the proceeds of the sale exceed the amount owing, the excess
shall be applied in the same manner as the proceeds of the sale of
the land and improvements remaining on it would be applied.
RSA 1980 cB-12 s48
56
Enforcement of judgment
63 Any judgment given by the court pursuant to this Act may be
enforced by execution or otherwise as a judgment of the court.
RSA 1980 cB-12 s49
Alberta Rules of Court

64 The Alberta Rules of Court apply in all actions brought under
this Act except where and to the extent that they are inconsistent
with this Act or the rules prescribed under this Act.
RSA 1980 cB-12 s50
Proof of claim after proceedings

65(1) At any time before the amount realized in the proceedings
for the satisfaction of liens has been distributed, a lienholder who
has not been served with notice of the proceedings may, on
application to the court and on such terms as to costs and otherwise
as may be just, be allowed to prove the lienholder’s lien.
(2) When a lien under subsection (1) is proved and allowed, the
court shall amend the judgment to include the lien.
RSA 1980 cB-12 s51
Appeal
66(1) An appeal lies to the Court of Appeal from a decision of the
court under this Act in all matters where the amount of the lien or
the total amount of the liens joined in one action or proceedings is
$5000 or more.
(2) When the amount of the lien or the total amount of the liens
joined is less than $5000, the decision of the court of first instance
is final.
RSA 1980 cB-12 s52;1985 c14 s25
Service of documents
67 In addition to any method of service permitted by law, any
document or statement of claim respecting matters coming under
this Act may be served on a lienholder
(a) by personal service,
(b) by single registered mail sent to the address for service set
out in the statement of lien, or
(c) by delivery to the address that is the address for service

set out in the statement of lien.
1985 c14 s26
Fees
68 No fees are payable to a Registrar or to a court
57
(a) in connection with the registration or discharge of any

proceedings taken by a labourer to realize a claim for
wages under this Act, or
(b) on the filing of an order, record or judgment or other

proceeding in connection with it.
RSA 1980 cB-12 s53
Costs
69 When it appears to the court in a proceeding to enforce a lien
under this Act that the proceedings have arisen from the failure of
an owner or contractor
(a) to fulfil the terms of the owner’s or contractor’s contract

of engagement for the work in respect of which the liens
are sought to be enforced, or
(b) to comply with this Act,
the court may order the owner and contractor, or either of them, to
pay all the costs of the proceedings in addition to the amount of the
contract or subcontract or wages due by the owner or contractor, or
both, to any contractor, subcontractor or labourer and may order a
final judgment against the owner and contractor, or either of them,
in default for those costs.
RSA 1980 cB-12 s54
Part 9
Regulations and
Transitional Provisions
Regulations
70 The Lieutenant Governor in Council may
(a) make regulations for the purposes of section 1.1
(i) prescribing a class of professionals acting in a

consultative capacity referred to in section 1.1(1);
(ii) respecting the application of any part or all of this

Act to one or more prescribed classes of
professionals acting in a consultative capacity;
(iii) respecting an agreement, entity, undertaking or work

or a class of agreements, entities, undertakings or
works for the purposes of section 1.1(2)(c);
58
(iv) prescribing persons or entities, or classes of persons

or entities, whether incorporated or not, for the
purposes of section 1.1(3);
(v) prescribing a project agreement or a class of project

agreements to finance and undertake an improvement
for the purposes of section 1.1(3);
(vi) respecting the application of any part or all of this

Act to a prescribed person, entity or project
agreement or to a prescribed class of persons, entities
or project agreements for the purposes of section
1.1(3);
(a.01) make regulations for the purposes of Part 2;
(a.1) make regulations for the purposes of Part 3;
(a.11) without limiting the generality of clause (a.1), make

regulations for the purposes of Part 3
(i) prescribing the information referred to in section

32.1(1)(h);
(ii) respecting the application of section 32.1(3);
(iii) respecting the requirement to give an owner proper

invoices every 31 days under section 32.1(6);
(iv) prescribing the form and manner for a notice of

dispute referred to in section 32.2(2);
(v) prescribing the form and manner of a notice of non-

payment referred to in section 32.3(5)(a) and (6);
(vi) respecting notices of non-payment for the purposes

of section 32.4;
(vii) prescribing the form and manner of a notice of non-

payment referred to in section 32.5(6)(a) and (7);
(viii) prescribing the rates referred to in section 32.6;
(a.2) make regulations for the purposes of Part 5
(i) respecting the appointment of any officers or

employees required for the administration of a
Nominating Authority;
59
(ii) subject to section 33.2(2), respecting the powers and

duties of a Nominating Authority;
(iii) respecting the payment of remuneration and

expenses to the officers or employees of a
Nominating Authority;
(iv) respecting qualifications for the appointment of

adjudicators;
(v) specifying the matters in respect of which an

adjudicator may hear a dispute;
(vi) respecting the powers and duties of adjudicators;
(vii) respecting the determination of disputes, including

the making of orders and any relief or remedies an
adjudicator may order;
(viii) respecting procedures for making applications for

adjudication, including any procedures, fees and
forms required;
(ix) respecting the service of notices, documents and

orders for adjudication;
(x) respecting the additional requirements referred to in

section 33.61(1)(e);
(xi) respecting judicial reviews for the purposes of

section 33.7;
(xii) respecting the management and administration of the

adjudication process;
(xiii) respecting any other matter that the Lieutenant

Governor in Council considers necessary or
advisable to carry out the intent and purposes of Part
5.
(a.3) prescribe rules to expedite and facilitate the business

before any court under this Act, and to advance the
interests of suitors in it;
(b) prescribe a tariff of costs
(i) as between parties, and
(ii) as between solicitor and client,
60
payable for services rendered in respect of a lien under

this Act;
(c) prescribe forms to be used under this Act;
(d) prescribe rules for the purpose of remedying any

confusion, difficulty or inconsistency in applying any
provision, including transitional issues, of this Act and
any regulation prescribed under this Act;
(e) define terms used but not defined in this Act.

RSA 2000 cB-7 s70;2020 c30 s25
Application of former Acts

71(1) The Mechanics Lien Act, 1960, SA 1960 c64, continues in
effect and applies, notwithstanding its repeal, to any lien registered
in a land titles office after June 30, 1961 and before July 1, 1970.
(2) The Mechanics’ Lien Act, RSA 1955 c197, continues in effect
and applies, notwithstanding its repeal, to any lien registered in a
land titles office on or before June 30, 1961.
RSA 1980 cB-12 s56
Transitional
72 All references in sections 1, 18, 21 and 23 to “10%” are
deemed to be references to “15%” with respect to the following
contracts or subcontracts under which a builders’ lien may arise:
(a) any contract or subcontract entered into before September

1, 1997;
(b) any contract solely for the furnishing of materials, the

performance of services or the provision of work by a
labourer entered into before September 1, 1997;
(c) any subcontract entered into on or after September 1,

1997 that is made under a contract entered into before
September 1, 1997;
(d) any contract solely for the furnishing of materials, the

labourer entered into on or after September 1, 1997 that is
made in respect of a contract entered into before
September 1, 1997.
1997 c24 s1
Transitional
73 In sections 18(1.1), 21(3) and (4), 23(1.1), 27(2.1) and (2.2)
and 41(1)(b), (2)(b), (3)(b) and (4)(b) all references to “90 days”
are deemed to be references to “45 days” with respect to the
61
following contracts or subcontracts under which a builder’s lien

may arise:
(a) any contract or subcontract entered into before April 1,

2002;
(b) any contract solely for the furnishing of materials, the

labourer entered into before April 1, 2002;
(c) any subcontract entered into on or after April 1, 2002 that

is made under a contract entered into before April 1, 2002;
(d) any contract solely for the furnishing of materials, the

labourer entered into on or after April 1, 2002 that is made
in respect of a contract entered into before April 1, 2002.
2001 c20 s13
Transitional
74(1) In this section,
(a) “former provisions” means the provisions of this Act as

they read immediately before the coming into force of the
Builders’ Lien (Prompt Payment) Amendment Act, 2020;
(b) “new provisions” means the provisions of this Act as they

read on the coming into force of the Builders’ Lien
(Prompt Payment) Amendment Act, 2020.
(2) Any contract or subcontract entered into on or after the coming

into force of the Builders’ Lien (Prompt Payment) Amendment Act,
2020 must conform to the new provisions.
(3) Subject to the regulations, any contracts or subcontracts

entered into prior to the coming into force of the Builders’ Lien
(Prompt Payment) Amendment Act, 2020 are governed by the
former provisions until expired, terminated or amended in order to
conform to the new provisions.
2020 c30 s26
62
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Province of Alberta

PROMPT PAYMENT AND

Revised Statutes of Alberta 2000

Current as of November 16, 2022

© Published by Alberta King’s Printer

Alberta King’s Printer

© Alberta King’s Printer, 20__.*

*The year of first publication of the legal materials is to be completed.

Alta. Reg. Amendments

Prompt Payment and Construction

24.1 Payment of amount retained under sections 18, 21 and 23

HER MAJESTY, by and with the advice and consent of the

(a) “certificate of substantial performance” means a

(b) “contractor” means a person contracting with or employed

(c) “court” means the Court of King’s Bench;

(d) “improvement” means anything constructed, erected,

(e) “labourer” means a person employed for wages in any

(f) “lienholder” means a person who has a lien arising under

(h) “major lien fund” means

(i) where a certificate of substantial performance is not

(A) that is over and above the 10% referred to in

(B) that has not been paid by the owner in good

(ii) where a certificate of substantial performance is

(A) that is over and above the 10% referred to in

(B) that, with respect to any work done or materials

(i) “minor lien fund” means the amount required to be

(i) that is over and above the 10% referred to in section

(ii) that, with respect to any work done or materials

(j) “owner” means a person having an estate or interest in

(i) on whose credit,

(ii) on whose behalf,

(iii) with whose privity and consent, or

(iv) for whose direct benefit,

work is done on or material is furnished for an

(k) “prescribed” means prescribed by the regulations;

(l) “registered lienholder” means a lienholder who has

(m) “Registrar” means the Registrar of Land Titles;

(n) “subcontractor” means a person other than

(ii) a person engaged only in furnishing materials, or

(iii) a person engaged only in the performance of

who is not a contractor but is contracted with or employed

(o) “wages” means money earned by a labourer for work

(p) “work” includes the performance of services on the

(2) This Act does not apply in respect of

(a) public works as defined in the Public Works Act,

(b) agreements to finance and undertake an improvement in

(i) the Crown in right of Alberta;

(ii) a provincial corporation as defined in the Financial

(c) any other agreement, entity, undertaking or work or class

(a) when the work under a contract or a subcontract or a

(b) when the work to be done under the contract or

(i) 3% of the first $500 000 of the contract or

(ii) 2% of the next $500 000 of the contract or

(iii) 1% of the balance of the contract or subcontract

Work not completed

(a) the work under a contract or a subcontract or a substantial

(b) the work under a contract or a subcontract cannot be

the value of the work to be completed or materials to be furnished

Valuation of work done

(a) the contract price, or