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Builders’ liens are one of the most powerful—and misunderstood—legal tools in British Columbia’s construction industry. Whether you’re a homeowner renovating a kitchen, a contractor managing a multi‑million‑dollar project, or a subcontractor waiting on overdue payment, the Builders’ Lien Act (B.C.) shapes your rights and risks.
This blog breaks down what you need to know in plain language, without losing the legal precision that matters when money and property are on the line.
What Is a Builders’ Lien?
A Builders’ lien is a legal claim that contractors, subcontractors, workers, and material suppliers can register against a property when they haven’t been paid for work or materials.
It secures the unpaid amount against the land and protects the claimant if the contractor above them becomes insolvent.
Who Can File a Builders’ Lien?
You may be entitled to file a lien if you:
- Perform labour
- Supply materials
- Provide equipment
- Are a subcontractor or general contractor
- Are an architect, engineer, or design professional
Critical Deadlines: The 45‑Day Rule
You must file your lien within 45 days of:
- Substantial completion of the project
- Abandonment of the project
- Termination of the contract
- Issuance of a certificate of completion
After filing, you must start a lawsuit and file a Certificate of Pending Litigation (CPL) within one year.
The Holdback System
BC law requires owners to retain a 10% holdback from each payment. This fund satisfies lien claims and must be retained until the 55‑day lien period expires.
How Builders’ Liens Affect Property Owners
A lien can complicate refinancing, selling, or obtaining financing. Owners can be responsible for paying subcontractors even if they already paid the general contractor, especially if the holdback wasn’t maintained.
How to Remove or Clear a Builders’ Lien
Options include:
1. Paying the claim
2. Posting security (bonding off the lien)
3. Challenging the lien’s validity
Common Disputes
Builders’ lien disputes often involve non‑payment, scope disagreements, deficiencies, cost overruns, or incorrect lien filings.
Final Thoughts
Builders’ liens are powerful but technical. A single missed deadline can make or break a claim. Timely legal advice can save enormous costs and stress. Please reach out to any member of the Construction Law Group at Lindsay Kenney LLP for more information or for assistance with a Builders’ Lien.
This article is intended to be an overview of the law and is for informational purposes only. Readers are cautioned that this article does not constitute legal or professional advice and should not be relied on as such. Rather, readers should obtain specific legal advice in relation to the issues they are facing.
