Construction Lien FAQs (frequently-asked questions)
Contact our law firm to prepare and enforce construction liens in Calgary at 403-400-4092 or Chris@NeufeldLegal.com
Who is eligible to file a construction lien in Alberta?
Any person who provides work or furnishes materials in respect of an improvement for an owner, contractor, or subcontractor has a right to a lien. This explicitly includes registered architects and engineers providing consultative services, provided their work contributes to the physical improvement of the land.
What is the "60-day rule" for filing a lien, and how is the start date determined?
Most contractors and subcontractors must register their lien at the Land Titles Office within 60 days of the last day work was performed or materials were furnished. "Total completion" or "abandonment" marks the start of this clock, but minor remedial or warranty work generally does not extend the deadline.
Are there different filing deadlines for specific types of work?
Yes, the deadline is extended to 90 days for improvements related to oil and gas wells or well sites, as well as for the supply of ready-mix concrete. Standard residential and commercial projects remain subject to the 60-day limit from the date of completion or last supply.
How long does it take to get a construction lien registered in Alberta?
There is a significant backlog at Alberta Land Titles, with land title documents (including construction liens) being queued and only being registered over 50 days after their receipt (circa April 2026), with the current processing rates being available on the Alberta Land Title's SPIN2 website.
Does Alberta Land Titles provide in-person counter service for construction liens?
Unfortunately, due to their efforts to meet the high volume of land titles submissions, both Alberta Land Titles offices (in Calgary and Edmonton) have been closed to in-person counter service since September 15, 2025, and given the significant backlog that exists (circa April 2026), it would not appear that they will be re-opening anytime soon.
What constitutes a "Proper Invoice" under the Prompt Payment and Construction Lien Act (PPCLA)?
A "Proper Invoice" must include specific details such as the contractor’s name, the date, a description of the work, the authority under which it was done, and the payment terms. It must be issued to the owner at least every 31 days to trigger the statutory payment timelines.
How do the 28-day and 7-day payment cycles work?
Once a proper invoice is received, the owner must pay the contractor within 28 days, and the contractor must then pay its subcontractors within 7 days of receiving that payment. If an owner disputes an invoice via a "Notice of Dispute" within 14 days, the contractor must promptly notify subcontractors and may refer the matter to adjudication.
Can a contractor "contract out" of the PPCLA's payment or lien timelines?
No, the PPCLA explicitly states that its provisions apply notwithstanding any agreement to the contrary. While "pay-when-paid" clauses may still exist in contracts, they cannot override the mandatory statutory timelines for payment and dispute notices.
What is the difference between a "Major Lien Fund" and a "Minor Lien Fund"?
The Major Lien Fund consists of the 10% holdback on work done prior to the issuance of a Certificate of Substantial Performance. The Minor Lien Fund is the 10% holdback on work performed after that certificate is issued until the project is totally complete.
How can a property owner remove a lien from their title to facilitate a sale or refinancing?
An owner can apply to the Court to "bond off" the lien by posting security, such as a lien bond or cash, in the full amount of the lien plus a buffer for costs. Once the security is paid into Court, the lien is discharged from the land title and attaches to the security fund instead.
Once a lien is registered at Land Titles, how long does it remain valid?
A registered lien is valid for 180 days from the date of registration unless an action is commenced to enforce it. To preserve the lien beyond this, the claimant must file a Statement of Claim and register a Certificate of Lis Pendens (CLP) on the title within that 180-day window.
What are the legal consequences of filing an "invalid" or "exaggerated" lien?
A person who registers a lien for an amount "grossly in excess" of what is due, or who knows they have no right to a lien, is liable for resulting costs and damages. Alberta Courts can award legal fees and damages to the owner unless the claimant can prove the filing was made in good faith and without negligence.
How does the "Statutory Adjudication" process work for payment disputes?
Adjudication is a fast-track dispute resolution mechanism where an independent expert from an Authorized Nominating Authority (like ARCANA) issues a binding decision on payment issues. The process is designed to be completed in approximately 45 to 53 days, providing a quicker alternative to traditional court litigation.
Can a lien be filed against "Crown" land or municipal property?
Liens cannot be registered against the title of land owned by the Provincial Crown (Government of Alberta), though the Public Works Act provides alternative payment bond protections for those projects. However, municipal lands are generally subject to the PPCLA, meaning a lien can typically be registered against a municipality’s interest in the land.
What is "Progressive Release of Holdback" and when is it mandatory?
For long-term projects exceeding one year with a contract value over $10 million, the owner must release the accrued holdback annually or on a set schedule if the contract allows. This ensures cash flow on massive developments where waiting until total completion to access the 10% holdback would be financially burdensome.
Who has priority if there is both a mortgage and a lien on the property?
In Alberta, a registered mortgage generally has priority over a construction lien only to the extent of the funds advanced in good faith before the lien was registered. Any mortgage funds advanced after the lien is registered at Land Titles will typically rank behind the lien claim in priority of payment.
For contractors, subcontractors and suppliers requiring the legal services of a lien lawyer for preparing, registering and enforcing their construction liens in Calgary and surroundings (Airdrie, Cochrane, Bearspaw, Chestermere), contact our law firm at 403-400-4092 or Chris@NeufeldLegal.com.
IMPORTANT NOTE: This website is designed for general informational purposes. The site is not designed to answer specific questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as substitute for individual legal advice. If you want specific legal advice, you need to engage a lawyer under established legal engagement procedures that have been specifically agreed to by that lawyer.