British Columbia has recently introduced Bill 20, the Construction Prompt Payment Act, bringing it in line with prompt payment regimes already in place across Canada. The legislation will come into force once regulations are finalized.

‍

Once effective, Bill 20 will impose mandatory payment timelines tied to standardized “proper invoices.” Owners will generally have 28 days to pay, with payment cascading down to contractors and subcontractors within strict timelines. Even where payment is withheld upstream, parties must still pay by their own calculated payment dates unless proper notices of non-payment are issued. Undisputed amounts must always be paid on time.

‍

Bill 20 also introduces a streamlined adjudication process to resolve payment disputes quickly. Eligible disputes, including non-payment and valuation of work, may be referred to adjudication, with binding decisions issued in as little as 30 days. Determinations are enforceable as court judgments, helping keep funds flowing and projects moving.

‍

Bill 20 also amends the Builders Lien Act by eliminating certain liens, shortening holdback periods from 55 to 46 days, and affirming demolition and removal work as lienable improvements. While the legislation will not apply retroactively, it represents a significant shift for B.C.’s construction and development industry.