The Alberta government has introduced the Service Alberta Statutes Amendment Act, 2024, a proposed bill that could improve the lives of condominium owners, residents, and the construction industry.
This legislation would amend the Condominium Property Act, the Prompt Payment and Construction Lien Act (PPCLA), and the Public Works Act to address long-standing issues affecting Albertans. The amendments to the PPCLA will take effect upon proclamation, while changes to the Public Works Act are set to come into force in Spring 2025.
If passed, one of the major changes would be the creation of a Condominium Dispute Resolution Tribunal, a long-awaited measure aimed at making it easier and more affordable for condominium owners and corporations to resolve common disputes without needing to go to court.
Dale Nally, Minister for Service Alberta and Red Tape Reduction, highlighted the bill's potential impact: "...This legislation will improve condominium governance, provide additional measures for consumer protection and establish a mechanism for easy access to dispute resolution."
The bill also proposes that condominium chargebacks for damages caused by individual owners will now be treated as contributions or condominium fees, which would help protect condominium communities' financial stability.
Additional provisions would allow a simplified voting process for straightforward decisions, such as approving a meeting agenda. Technical requirements would also be established for newly built condominiums, offering additional protections for consumers against structural or other defects.
Hugh Willis, co-chair of Government Advocacy for CCI North Alberta, supported these changes, saying that they will increase consumer protection and improve the lives of condominium owners, boards, and the industry.
"Our organization applauds the legislative protection for volunteer condominium board members acting in good faith, similar to protections offered to other volunteers in the non-profit community."
Streamlined payments and transparency in construction projects
The bill would also amend Alberta’s Prompt Payment and Construction Lien Act (PPCLA) and the Public Works Act to establish a unified framework for payment schedules across all construction projects, including those administered by the government. This move would ensure that government contracts adhere to the same prompt payment standards as private-sector projects.
Key provisions under the Public Works Act amendments include a 31-day billing cycle from the prime contractor to the owner, invoicing rules, and options for arbitration and court actions to proceed simultaneously. However, these rules will not apply to maintenance projects or public-private partnership contracts.
The PPCLA amendments also clarify the adjudication process, providing an efficient dispute-resolution option for the construction industry. Additionally, architects and engineers will have more flexibility to opt out of holdback and lien requirements on a project-by-project basis, allowing consulting professions greater autonomy.
According to the province, these updates follow extensive consultations with stakeholders and aim to serve condominium communities better, protect consumer interests, and enhance fairness and transparency within Alberta’s construction industry.