The Government of Saskatchewan announced the Builders’ Lien (Prompt Payment) Amendment Act, 2019 will be proclaimed into force on March 1, 2022.

The legislation serves two main purposes:

1. Ensuring prompt payment to contractors and subcontractors, and
2. Creating an efficient adjudicative process to resolve disputes between owners, contractors, and subcontractors.

Proper Invoice

The Act requires owners to pay contractors within 28 days of receiving a “proper invoice.”  A “proper invoice” is an invoice that satisfies certain conditions outlined in s. 5.1 of the Act and must be provided to the owner on a monthly basis unless the contract states otherwise.

Exemptions

As noted in the introduction to this article, the Regulations exempt the following professionals from benefiting from the prompt payment and adjudication process:

1. Persons supplying services or materials in relation to a mine or mineral resource (other than oil and gas);
2. architects, engineers, and land surveyors; and
3. Persons supplying services or materials in respect to an improvement related to infrastructure for the generation and distribution of electrical energy by SaskPower.

Adjudication

The Act establishes an adjudicative body and procedure to resolve certain disputes between owners, contractors, and subcontractors. This body will offer stream-lined and cost-effective dispute resolution resource.

The Saskatchewan Construction Dispute Resolution Office (SCDRO) has been designated as the Adjudication Authority. To serve as an adjudicator, the Regulations require that an individual must have 10 years of relevant experience in the construction industry and must have completed a training program specified in s. 5.43 of the Regulations, in addition to other conditions.

The adjudication process includes five steps:

1. The Notice of Adjudication is served.
2. An adjudicator is appointed, either by consent of the parties or by the Authority.
3. Within 5 days after the appointment of the adjudicator, the moving party must provide to the adjudicator and the other party a copy of the notice, contract or subcontract, and any other documents to be used during the adjudication.
4. Within the following 5 days, the responding party may serve the adjudicator and the moving party with a written response and any documents they want to use.
5. The deadline for the adjudicator’s determination is 30 days after receiving the moving party’s documents, although this deadline may be extended. The determination must be delivered in writing and, if filed in court, is enforced like a court order.
6. Each party to an adjudication is bear its own costs unless the adjudicator orders otherwise.

December 20, 2021