10 things you might not know about the British Columbia Builders Lien Act

The British Columbia Builders Lien Act (BLA) is a complex piece of legislation that should be understood by those advising, or participating in, the construction industry, particularly on the business side. Yet there are aspects of the BLA that are sometimes overlooked, misunderstood, or are inadvertently ignored. Its operation is not always obvious. Here are some of the BLA’s less obvious characteristics:

    Completion of a subcontract does not trigger the holdback period. A general contractor must retain a 10 per cent holdback from all amounts paid on account of the contract price to subcontractors, except for amounts paid to material suppliers, consultants, and workers. However, this holdback is retained from completion of the general contract, not from completion of the subcontract. The only exception is where a valid Certificate of Completion is issued for the subcontract. In that case, the holdback period is triggered for the subcontract and, if no liens arise in the interim, the holdback can be released to the subcontractor after 55 days. At the same time, the owner may release an equivalent amount to the general contractor. This process is known as “progressive release of the holdback”.

Construction lien law differs significantly between all of the provincial and territorial jurisdictions in Canada, so the peculiarities noted above may be entirely different in a jurisdiction outside British Columbia.

This article is intended to provide general information, not legal advice. For more information, contact any of the key contacts listed below.

2 Quigg Homes WV345 Ltd v Bosma, 2004 BCSC 1582 at paras 4-5.

3 Technically, the “improvement”, the thing being built. It is probably not sufficient to post it in the site office or trailer!

4 West Fraser Mills Ltd v BKB Construction Inc, 2011 BCSC 1460, rev’d on other grounds 2012 BCCA 89; Anderson v Kootenay Gold Mines (1913), 18 BCR 643 (Co Ct).