10-Point AP Compliance Audit

Is your AP process PPCLA-compliant?

Alberta's Prompt Payment and Construction Lien Act runs a 28-day clock on every proper invoice you receive under a construction contract - including services and materials supplied to an improvement. If your AP process was built before the Act, it may be creating adjudication exposure on invoices sitting in your queue right now.

Takes about 5 minutes - check each item your process has in place

0/10
compliance items confirmed
Invoice Receipt & Tracking
01
Invoices are date-stamped on physical or digital receipt - before they are entered into the ERP.
The 28-day payment clock runs from when you receive a proper invoice, not from ERP entry. Without a receipt timestamp, you can't prove when Day 1 was.
02
You have a live tracking list of all open construction and services invoices with payment due dates and dispute-notice deadlines visible.
Someone in your organization needs to own a real-time view of where each invoice sits against the 28-day clock. An AP queue is not a compliance tool.
03
Your ERP payment terms for active PPCLA-covered construction contracts are set to pay within 28 days of receipt - not net 30 or net 60.
A 30-day or 60-day net-term configuration can put undisputed invoices past the 28-day deadline as a matter of routine. Audit your vendor configurations against active contract types.
Dispute Notice Process
04
You have the prescribed dispute notice form ready to use - filled in with the invoice number, disputed amount, and specific reasons.
The PPCLA requires a notice of dispute in the prescribed form within 14 days of receiving a proper invoice. A phone call, a casual email, or an informal hold is not a valid dispute notice.
05
Dispute notices are sent within 14 days of invoice receipt - not after internal deliberation concludes.
The 14-day window starts when the invoice arrives, not when your team decides there's a problem. Invoices cannot go "on hold" informally while the window expires.
06
Your project managers understand that a verbal dispute or phone call does not stop the PPCLA clock - only a written notice does.
PMs are typically the first to identify invoice problems. They need to know that notifying the contractor verbally creates no protection - and that they must trigger the written process within the window.
Contract & AP Configuration
07
Your standard services contracts include a definition of "proper invoice" specifying required information, format, and any supporting documentation.
The Act sets minimum proper invoice requirements, and your contract can add more. An invoice that doesn't meet them doesn't start the prompt payment clock until it's fixed. Without contract requirements, only the statutory minimum applies.
08
Your AP team knows which vendors and contracts are subject to PPCLA requirements - and applies different handling to those invoices.
Not every invoice your company processes falls under the PPCLA - it applies to contracts for improvements (construction work, and services or materials supplied to it). Your AP team needs to know which ones require the 28-day process.
09
Your document trail for any disputed amounts includes written records - not just phone logs or verbal descriptions of what was discussed.
If a dispute goes to adjudication, you need a paper trail. Adjudicators look for written documentation of the dispute, the reason, and any resolution discussions. Verbal records don't help you here.
10
Your standard contract language on adjudication, holdback, and lien waivers has been reviewed since the April 1, 2025 PPCLA amendments.
The 2025 amendments extended when adjudication is available (including after project completion) and let consultants opt out of the Act, which affects holdback and lien rights on their services. Language written before April 2025 may not reflect the current rules.

This is general information, not legal advice.