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British Columbia is entering a new era of construction law reform. With the introduction of Bill 20 – the Construction Prompt Payment Act and accompanying amendments to the Builders Lien Act (BLA), the province is aligning itself with other Canadian jurisdictions that have modernized payment and dispute‑resolution frameworks. These changes will significantly affect owners, contractors, subcontractors, and suppliers across BC’s construction sector.
This blog breaks down the key updates, why they matter, and what industry participants should be doing now to prepare.
1. Background: Why BC Is Changing Its Lien and Payment Framework
For years, BC has lagged behind provinces like Ontario and Alberta in adopting prompt payment legislation. Payment delays, cash‑flow bottlenecks, and costly lien disputes have been persistent industry challenges. Bill 20, introduced on October 7, 2025, represents the province’s most substantial construction law reform in decades. At the same time, the Builders Lien Act continues to undergo incremental legislative updates, with the most recent table of changes covering January 2024 through March 2026.
2. Key Amendments to the Builders Lien Act
A. Abolition of the Shimco Lien
One of the most consequential changes is the elimination of the “Shimco lien,” a unique BC legal construct that allowed lien claimants to assert a separate lien against the holdback even after the land lien had expired. Bill 20 abolishes this dual structure, clarifying that only a single lien against the land will remain.
B. Expanded Definition of “Improvement”
Bill 20 expands the definition of “improvement” under the BLA to expressly include demolition work and removal work. This ensures that lien rights clearly apply to preparatory and teardown activities.
C. Ongoing Legislative Updates (2024–2026)
The BC Laws Table of Legislative Changes shows multiple amendments—some in force, some pending—affecting various BLA sections between 2024 and 2026. These include amendments to section 1 (definitions), changes to sections 4, 4.1, 5, 8, and 48, and new provisions enacted but not yet in force.
3. Introduction of Prompt Payment Rules (Bill 20)
Bill 20 introduces the new Construction Prompt Payment Act, which will operate alongside the BLA. This is a major shift for BC.
A. Proper Invoices
Contractors must issue monthly “proper invoices” unless the contract specifies otherwise. These invoices trigger payment timelines.
B. Mandatory Payment Timelines
Owners must pay contractors within 28 days of receiving a proper invoice. Contractors must pay subcontractors within 7 days of receiving payment or by the calculated payment date (an additional 7 days per tier).
C. Notices of Non‑Payment
Owners disputing an invoice must issue a written notice of non‑payment within 14 days. Contractors and subcontractors have 7 days after receiving a notice to issue their own notice.
4. New Interim Adjudication Process
Bill 20 introduces a fast‑track adjudication system for resolving payment disputes. Adjudication can address disputes involving failure to issue a proper invoice, failure to make required payments, notices of non‑payment, valuation of work or materials, change orders, and other agreed matters. Adjudication must be commenced within 90 days of contract completion.
5. What These Changes Mean for Industry Participants
Owners: Expect stricter payment timelines and reduced exposure to holdback‑related litigation.
Contractors: Ensure invoices meet proper invoice requirements and prepare for adjudication.
Subcontractors & Suppliers: Benefit from greater payment certainty and clearer lien rights. Legal & Project Management Teams: Update contract templates, workflows, and training.
6. Preparing for Implementation
Stakeholders should begin preparing now by reviewing contracts, implementing invoice‑tracking systems, training staff, reassessing risk allocation, and monitoring regulatory announcements.
7. Conclusion
The Builders Lien Act and Bill 20 reforms represent a transformative shift in BC’s construction law landscape. By modernizing payment practices, clarifying lien rights, and introducing adjudication, the province aims to improve cash flow, reduce disputes, and align with national best practices.
For more information or assistance, please contact any member of our Construction team.
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.
