The prompt payment bill reported on in our earlier blog post, “Saskatchewan Introduces Prompt Payment Bill for Construction Industry” (the Prompt Payment Bill), was passed by the Saskatchewan Legislature on May 2, 2019. It is not yet law, however. The Prompt Payment Bill will become part of The Builders’ Lien Act when it is proclaimed, which should occur within the next year.

The regulations referenced in the Prompt Payment Bill have not yet been drafted. The regulations will determine important things like what must be in an invoice, requirements for delivering notices of non-payment, and specifics on how adjudication will work, including who can be an adjudicator and how adjudicators will be appointed. The regulations may also exempt certain segments of the construction industry from the prompt payment legislation.

Our earlier blog post contains a detailed description of the first version of the Prompt Payment Bill. The version passed by the Saskatchewan Legislature contains only one notable change: the Prompt Payment Bill now provides that the recipient of a notice of adjudication can respond to it in writing in a manner to be specified in the regulations.

Companies should ensure that their invoicing and payment procedures comply with the Prompt Payment Bill and its regulations because they will soon become law. To that end, companies should also closely monitor the status of the Prompt Payment Bill and its regulations. However, generally speaking, the Prompt Payment Bill will apply only to contracts entered into after the Prompt Payment Bill is proclaimed.

About the Authors:

Caroline is an associate lawyer in the Saskatoon office and practices in all areas of corporate/commercial litigation, with a focus on construction and real estate disputes. She also has significant experience in corporate and securities litigation, including plans of arrangement, Crown royalty disputes, and product liability.

Collin is a partner at the Saskatoon office with experience in construction contracts, tendering, construction litigation and dispute resolution, wrongful dismissal and employment issues, security enforcement, and professional discipline.

About McKercher LLP:

McKercher LLP is one of Saskatchewan’s largest and most established law firms with offices in Saskatoon and Regina. Our deep roots and client-first philosophy have made our firm rank in the top 5 in Saskatchewan by Canadian Lawyer magazine (2017/18). Integrity, experience and capacity provide innovative solutions for our clients’ diverse legal issues and complex business transactions.

This post is for information purposes only and should not be taken as legal opinions on any specific facts or circumstances.  Counsel should be consulted concerning your own situation and any specific legal questions you may have.