Retailers in Alberta are raising serious concerns about the province’s Prompt Payment and Construction Lien Act, claiming the legislation exposes them to devastating financial harm—often without their knowledge or involvement in the disputes that trigger it.
Ziad Kaddoura, an Edmonton-based entrepreneur, is leading the charge in calling for change. He says the current lien process allows contractors to file claims with virtually no oversight or verification, putting retail tenants—who may not even be aware of the situation—in immediate legal and financial jeopardy.
“Imagine waking up one day to discover that your thriving retail business is suddenly at risk—not because of anything you did wrong, but because of a paperwork loophole,” said Kaddoura. “No court judgment. No opportunity to respond. No real proof required. Just a signed form, and your livelihood is hanging in the balance.”
How Alberta’s Lien Law Works—And Why It’s a Problem for Retailers
Under the Prompt Payment and Construction Lien Act, contractors or subcontractors can register a lien on a commercial property simply by filing paperwork with the Alberta Land Titles Office. The stated intention of the legislation is to protect construction professionals from non-payment for completed work.
But according to Kaddoura, the law does not require contractors to provide any evidence or proof that the tenant or landlord agreed to the work, received the invoice, or was even made aware of the costs being claimed.
“There is no requirement to submit evidence, no burden of proof, and no formal hearing,” he said. “Just like that, a lien is registered, and it’s the retailer who pays the price.”
The implications are dire. A lien on the property can result in a tenant breaching their lease, defaulting on loan agreements, or even facing eviction. Challenging or removing the lien, meanwhile, can take months and cost thousands of dollars in legal fees—an effort few small or mid-sized retailers can afford.
“It Happens More Than You’d Think”
Kaddoura notes that the impact of this legal blind spot is not rare or hypothetical. He describes it as a recurring issue that affects retailers province-wide.
“Retailers can be caught in the crossfire of disputes they had nothing to do with, yet are forced to bear the full financial fallout,” he explained. “There is no obligation for the contractor to prove that their work was authorized by the retailer, or that the invoice was accurate, reasonable, or even delivered.”
He says this lack of accountability creates opportunities for abuse. In cases where landlords hire contractors to do improvements or repairs, retailers may become unintended casualties if those contractors aren’t paid—or even if they claim they weren’t paid. Because the lien process bypasses the court system, there’s no judge involved to evaluate the legitimacy of the claim.
“Unlike other legal claims, where a judge reviews evidence and arguments before issuing an order, a lien can be slapped onto a property with no judicial oversight—just a form, a signature, and a fee.”
A Retailer’s Reform Proposal
Kaddoura is now calling on the Government of Alberta to implement urgent reforms to the legislation to ensure fairness and due process for business owners. His proposed changes include:
- Mandatory Documentation: Contractors should have to file proof—such as signed contracts and approved invoices—when registering a lien.
- Retailer Notification and Response Period: Retail tenants should be notified in advance and allowed to respond before a lien is registered.
- Court Oversight: Lien approvals should require judicial review, as is common with most other legal processes.
- Retailer Protections: Leaseholders should be protected from liens arising from third-party contractor agreements they didn’t initiate or authorize.
“This is not just a legal issue—it’s an economic one,” Kaddoura emphasized. “Retailers across Alberta are already navigating rising costs, labour shortages, and post-pandemic recovery. The lien process, as it stands, threatens their survival based on a technicality.”
Rallying Retailers and Business Advocates
Kaddoura is urging others in the retail industry to speak up and take action before more businesses are impacted. He believes the issue extends far beyond his own experience, and that collaboration among entrepreneurs, business groups, and policy-makers is essential.
“We cannot allow paperwork to override fairness,” he said. “I urge retailers, business owners, and industry associations to join me in pushing for these critical reforms.”
Organizations such as the Retail Council of Canada, Canadian Federation of Independent Business, and local chambers of commerce may be well-positioned to bring further visibility to the issue and encourage government engagement.
“Together, we can protect our businesses, our employees, and our communities from being collateral damage in a broken system,” Kaddoura said.
What’s Next?
There is currently no formal review underway by the Alberta government on the Prompt Payment and Construction Lien Act. However, increased lobbying from small businesses and retailers could place pressure on lawmakers to revisit the legislation—particularly if more cases come to light.
Kaddoura says he’s prepared to meet with policymakers, share additional stories from other affected business owners, and advocate for changes that preserve both the intent of the law and the protection of law-abiding tenants.
“Let’s make Alberta’s lien laws fair for everyone,” he concluded.
