seven days, pay all subcontractors and suppliers. These are only
three examples of the numerous deadlines.
The most important change in the Bill for projects is the introduc-tion
of the adjudication system. A party to a contract can refer valu-ation,
payments, change order, costs, certification issues and other
matters to the adjudicator for determination. A party to a contract
or a subcontract may refer a matter to adjudication even if the mat-ter
is the subject of a court action or of an arbitration pursuant to
The Arbitration Act, 1992 (Saskatchewan).
To address concerns that the adjudication system may be mis-used,
if an adjudicator determines that a party to the adjudication
has acted in a manner that is frivolous, vexatious, an abuse of pro-cess
or other than in good faith, the adjudicator may provide, as part
of the adjudicator’s determination, that the party be required to pay
some or all of the other party’s costs, any part of the fees that would
otherwise be payable by the other party, or both. Therefore, ample
consideration should be given prior to proceeding to adjudication
for a particular project.
Right to suspend work after adjudication,
determination and non-payment
After the adjudication process is complete and a determination is
made, if an amount deemed payable is not paid, only then can a
contractor or subcontractor suspend work. A contractor or subcon-tractor
does not have a de facto right to simply send an invoice and
then suspend work for failure to pay. However, if a contractor or sub-contractor
follows the process correctly and does suspend work in
accordance with the Bill, then the contractor or subcontractor is en-titled
to reasonable costs incurred.
Interest on late payments
Interest begins to accrue on an amount that is not paid when it is
due to be paid at the pre-judgment interest rate in effect pursuant to
The Pre-judgment Interest Act or, if the contract or subcontract spec-ifies
a different interest rate for the purpose, the greater of the pre-judgment
interest rate and the interest rate specified in the contract
or subcontract. Interest also accrues on amounts deemed payable
by the adjudicator in a similar fashion.
Miller Thomson will continue to follow these important changes
impacting construction projects in Saskatchewan in the future, as
the Bill evolves and regulations are introduced. As always, connect
and talk to one of our Saskatchewan Construction Team lawyers
about these changes and how they may affect your current or fu-ture
This article is just a general overview of the proposed changes.
Stay tuned as more articles will follow. Next, we will be providing
an overview of the adjudication process. Along the way, as the pro-cess
advances, we will be exploring and providing further updates
as Bill 152 makes its way through the legislature.
If you have any questions about Bill 152 and the proposed
Saskatchewan prompt payment process, or general questions about
construction law or related matters, please feel free to contact Troy
Baril of Miller Thomson’s Saskatchewan Construction Team. He
can be reached at firstname.lastname@example.org or 306-667-5630.
40 Think BIG | Quarter 1 2019 | saskheavy.ca