Pay Now, Argue Later

What Alberta’s Courts Say About Adjudication and Liens

Prompt payment adjudication is designed to keep money flowing — but many wondered how it would interact with builders’ liens. Alberta’s first major court decision on the issue delivered a clear message: adjudication wins the timing battle.

Adjudication vs. Liens — Who Wins?

In Welcome Homes Construction Inc. v. Atlas Granite Inc. (2024 ABKB 301), a subcontractor wasn’t paid for installed countertops. They filed a lien and also went to adjudication under the PPCLA.

The adjudicator ordered payment. The owner pushed back, claiming the lien was invalid — so why pay?

The Court shut that down, including because:

• lien and adjudication processes operate independently

• payment ordered through adjudication must still be made

• a lien issue cannot delay cash flow

Practical Takeaways

Contractors & Trades:

• Use adjudication to unlock cash flow quickly

• Keep liens as backup security

• If you win in adjudication, expect payment — even while lien rights are still being sorted out.

Owners:

• You can’t stall payment by arguing about lien validity

• Pay now, pursue remedies later if needed

Adjudication is exactly what the legislation promised: a “pay now, litigate later” system.

Have a dispute brewing? Legally Built can help you enforce your prompt payment rights — or protect your interests if you’re on the paying end. Connect with us early to stay compliant, keep cash flowing, and stay ahead of risk.

This publication has been prepared for general information only and does not constitute legal advice or create a solicitor-client relationship. No reader should act or refrain from acting on the basis of any information included herein without seeking appropriate legal or other professional advice based on their particular circumstances. LEGALLY BUILT accepts no responsibility for any loss or damage that may arise from reliance on the information contained in this publication.