Track payment and holdback as separate questions. Release depends on the applicable statute and the relevant project events.
Prompt Payment and Construction Lien Act
The PPCLA framework began on 29 August 2022. Transition rules applied to older contracts. Alberta government public works have a separate framework; the PPCLA calculator is not for those contracts.
The owner’s 14-day notice window and 28-day payment window are in section 32.2. Use the prescribed form and check the service requirements.
Read the governing sourceThe explanation below is a cross-province introduction. This jurisdiction note does not make every general example a rule for this province. Read the original holdback guide for the shared explanation.
Why money is retained
Construction lien legislation can require a payer to retain part of a payment as holdback. That retained amount supports the statutory lien framework. The amount, calculation, release conditions and any special treatment must be checked for the jurisdiction.
A contractual retention is not necessarily the same thing as statutory holdback. Label the two clearly in your records.
Payment and release are different decisions
Prompt-payment provisions can be expressly subject to holdback requirements. An ordinary invoice payment date therefore does not establish that all retained money must also be released.
Completion, certification, publication and lien expiry can affect release. Reforms can also change periodic or annual release obligations, so an old project checklist may no longer be enough.
Keep the trigger, not just a predicted date
Record the event and document that support a release calculation. Note whether a lien or dispute affects the amount and whether a separate contract retention remains.
Tiercord Learn’s payment calculator excludes holdback release. Use the source material and qualified advice for the actual release decision.
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These are general educational explanations, not advice on a specific contract. Check the version of the law that applies to your project. This edition has not been represented as independently reviewed by a lawyer.
AlbertaPrompt Payment and Construction Lien ActSource register & editorial method