BC Builder's Lien

What is a BC builder's lien?

In British Columbia, a builder's lien (not "mechanic's lien") is a legal claim against land or a leasehold interest that helps contractors, subcontractors, suppliers, and some design professionals collect unpaid construction debts. Rights come from the Builder's Lien Act of British Columbia.

BC lien law uses its own vocabulary and timelines. Missing a filing date or holdback rule can eliminate your claim even when the client clearly owes money.

Who can claim a builder's lien?

Parties who supply work or materials to an improvement may have lien rights, including:

• General contractors under a head contract with the owner
• Subcontractors and sub-subcontractors
• Material and equipment suppliers
• Architects, engineers, and some other professionals on qualifying projects

Your place in the contract chain changes the notices and deadlines you must follow.

Statutory holdback (10%)

BC requires a 10% statutory holdback on most construction contracts. Owners (and contractors downstream) must retain holdback funds that can later be applied to valid lien claims.

Holdback is not optional extra margin. It is a trust-like protection fund tied to the project. Mishandling holdback can create liability for owners and general contractors when subs go unpaid.

Contractors should track:

• When holdback must be retained
• When it may be released
• How lien claims affect release timing

Notices and claim of lien

Common steps in BC lien practice include:

• Notice of contract in some cases when the contract value exceeds statutory thresholds
• Notice of intention to file a claim of lien in certain situations
• Filing a claim of lien in the appropriate Land Title Office

Deadlines depend on whether you are a head contractor or a subcontractor/supplier, and on when the project was completed, abandoned, or terminated.

Head contractors often face a 45-day window from issuance of a certificate of completion (or other triggering events) to file. Subcontractors and suppliers may have 45 days from the date they last supplied work or materials, with variations when a certificate of completion is issued.

Treat every certificate of completion like a calendar alarm. BC deadlines move fast after one is published.

Prompt payment and adjudication

BC has added prompt payment and adjudication processes for construction disputes. On many projects, unpaid parties can pursue faster dispute resolution instead of waiting months for court.

Prompt payment rules affect when invoices must be paid down the contract chain. Adjudication can decide payment disputes on an expedited timeline when statutory conditions are met.

Payment fights and lien fights often overlap. Know both tracks before you escalate.

Builder's lien vs contract claims

A builder's lien secures debt against the property. A straight contract claim sues the party who hired you. You may use one or both strategies depending on the facts and timing.

Strong documentation still wins either path:

• Written quotes and approved change orders
• Detailed invoices
• Proof of delivery and daily site records

Practical tips for BC contractors

Calendar lien deadlines at project start. Do not wait until accounts receivable is 90 days stale.

Track holdback on every draw. Show retainage clearly on invoices and internal job costing.

File in the correct Land Title Office. Use the office for the property's location.

Get BC counsel on large balances. One procedural defect can void an otherwise valid claim.

Disclaimer

This glossary entry is general information only, not legal advice. BC lien deadlines, holdback rules, and prompt payment procedures change. Consult a British Columbia construction lawyer before filing a claim of lien or starting adjudication.