BC’s Prompt Payment Legislation

The BC Government introduced Bill 20 – 2025 Construction Prompt Payment Act on October 7th, 2025, setting out the framework for how payment and payment dispute adjudication will work in BC’s construction industry. The BC Construction Association (BCCA) has prepared a list of frequently asked questions (FAQ) to assist members and industry stakeholders in understanding Bill 20.

At a high level, it covers the following:

  • Requirements for regular invoicing
  • Requirements of a proper invoice
  • Timelines for:
    • Submission of the proper invoice
    • Notice of an invoice not meeting proper invoice requirements
    • Notice of non-payment
    • Timeline for payment between the owner and contractor, contractor and subcontractors, subcontractors and their subcontractors (and so on down the supply chain)
    • Right to information
    • Adjudication
  • Workings of interim adjudication including but not limited to:
    • What matters can be adjudicated
    • Selection of an adjudicator and conduct of adjudication
    • Enforcement of a determination
    • Judicial review
  • Creation and obligations of the adjudication authority
  • Limited amendments to BC’s Builders Lien Act:
    • Eliminates “Shimco liens”
    • Release of holdback may be made after 46 days (currently 55 days)

Click here to read the provincial government’s news release.

Many details will be set out in regulations, which is why we will continue our advocacy for clarity, coordination, and certainty for all construction sectors and stakeholders. We recognize that it is still a bill before the Legislature, but refer to it as Bill 20 or prompt payment legislation for simplicity.

The following FAQ provides answers to common questions and explains in more detail what Bill 20 – 2025 Construction Prompt Payment Act means for industry. They provide a broad and simplified overview to help industry understand the Bill and prompt payment. They reflect our understanding and are for general information only, not legal advice. BCCA thanks David Volk of Jenkins Marzban Logan LLP for reviewing legislation-specific questions.

For more information and ongoing updates, visit the BCCA website. We have compiled comprehensive resources on prompt payment and adjudication, including background materials, FAQs, and will be adding future updates: bccassn.com/industry-priorities/prompt-payment

Frequently Asked Questions

Understanding Prompt Payment

Prompt payment legislation and Bill 20 provides recourse and enforcement mechanisms to address payment delays. It facilitates cash flow down the construction pyramid, which is highly susceptible to payment “freeze-ups.” Legislation can alleviate the disproportionate burden of payment delay, borne particularly by parties near the base of the construction pyramid.

Lack of payment certainty is one of the most significant issues in the construction sector. When contractors don’t get paid on time, it places a financial burden on businesses and blocks cash flow in the economy. The additional annual cost to taxpayers is estimated to be in the billions. Prompt payment legislation is a long-overdue measure to create fairness, stability, and financial certainty across the industry; similar legislation is already in place in most provinces. BC’s failure to implement this critical policy weakens our ability to compete nationally and attract and retain the investment and workforce our province needs to keep growing.

Prompt payment protects every level of the construction supply chain. When money flows predictably, disputes are reduced, trust is increased across the supply chain, and businesses of all sizes are supported in remaining competitive and sustainable.

Additional benefits include:

  • Mitigation of the impact of contingent payment clauses and inequalities of bargaining power among parties while preserving freedom of contract.
  • Consistency for applicable timelines, payment obligations, and enforcement mechanisms.
  • Address issues of incomplete or inaccurate invoicing that lead to payment delays.

No. The Bill was drafted by the BC government.

BCCA and other associations provided feedback during consultations, but the final drafting and decisions rest entirely with the Ministry of the Attorney General and the Legislature.

Our role is to advocate on behalf of industry and to help members understand and adapt to the new requirements.

You can read Bill 20 – 2025 Construction Prompt Payment Act here: Bill 20.

In addition to these FAQs, BCCA has created a summary of the key inclusions, which can be found at the outset of this document. We have also developed a series of Myths vs Realities to further explain what the legislation means for industry, how it will affect payment, invoicing, and dispute resolution, and to provide a more fulsome framework to support your understanding.

We also encourage you to register for our upcoming Webinar: Understanding BC’s Bill 20 Prompt Payment Act on October 20th from 8:30-9:30am (PST). This session will explain what has been introduced, what it means for your business, and the latest updates, including next steps toward enactment and enforcement. This is essential information for all industry stakeholders and will feature the following speakers: Chris Atchison, President of BCCA, Katy Fairley, Industry Practices Consultant with BCCA, and David Volk, Partner at Jenkins Marzban Logan.  All three have reviewed the Bill in detail, provided feedback to government, and bring first-hand knowledge of the Bill and what comes next.

No! The tabling of legislation is just the beginning of the journey. Work remains to develop regulations and establish an independent adjudication authority plus education and resources. The construction industry will continue to work with the government to ensure these pieces are implemented effectively, without delay, and in close and constant collaboration with industry and relevant stakeholders. This work includes our advocacy for Builders Lien Act modernization and progressive and mandatory release of holdback.

In addition, BCCA remains committed to working towards a fair, fast, and accessible adjudication process will resolve payment disputes in real time, preventing delays and costly disruptions. Adjudication ensures projects stay on track and relationships across the construction pyramid, from the owner to suppliers, remain intact.

Not yet. Royal Assent does not mean the Act is in effect. Prompt payment and adjudication will only apply once the legislation is enacted through regulations (Section 59). Experience in other provinces shows that this process takes time. We continue to urge the provincial government to prioritize the enactment of prompt payment so the law comes into force as soon as possible.

The BCCA has comprehensive resources on prompt payment on our website: https://bccassn.com/industry-priorities/prompt-payment/

We also encourage you to register for our upcoming Webinar: Understanding BC’s New Prompt Payment Legislation on October 20th from 8:30-9:30am (PST). This session will explain what has been introduced, what it means for your business, and the latest updates, including next steps toward enactment and enforcement. This is essential information for all industry stakeholders and will feature the following speakers: Chris Atchison, President of BCCA, Katy Fairley, Industry Practices Consultant with BCCA, and David Volk, Partner at Jenkins Marzban Logan.  All three have reviewed the Bill in detail, provided feedback to government, and bring first-hand knowledge of prompt payment and what comes next.

Yes. BCCA and the Regional Construction Associations will provide extensive education, resources, and support to help industry understand the legislation. This transition will not happen overnight: there will be time to learn, update systems, and adapt. At the same time, we are urging government to bring the legislation into effect as soon as reasonably possible. We understand time is of the essence, and timely enactment is critical for BC’s construction industry.

We encourage you to stay updated by visiting https://bccassn.com/industry-priorities/prompt-payment/.

Check out promptpayment.ca for more information.

You can show your support by sending a letter to the provincial government to push for priority enactment, no carve-outs or exemptions and the modernization of the Builders Lien Act to include the mandatory and progressive release of lien holdback. We’ve made it easy to send a pre-drafted letter that’s ready to go whenever you are. All you need to do is input your name, postal code, and email, and a letter will be automatically sent to the MLA in your riding.

Details of the Legislation Bill 20 – 2025 Construction Prompt Payment Act

We don’t know yet. The government will set this out in the regulations in the future. BCCA strongly advocates that no sector or owner type be carved out or exempted. Prompt payment legislation must apply across the board. Creating carveouts would cause confusion, as many firms work across multiple sectors and project types, making it unclear which rules apply.

That is why continued industry advocacy is essential: we will continue to advocate to government that this legislation apply to all sectors and all organizations without exemption. Once enacted, you can’t contract out of Prompt Payment Legislation, just like the Builders Lien Act.

If everything goes smoothly and the owner does not give notice of non-payment, the flow of payment looks like this:

  • Day 0: Contractor delivers a proper invoice to the owner (triggering event).
  • Day 28: Owner must pay the contractor in full.
  • Day 35: Contractor must pay subcontractors within 7 days of receiving payment.
  • Day 42: Subcontractors must pay their sub-subcontractors within 7 days.
  • Day 49: Sub-subcontractors must pay the next tier down, and so on.

Contractors need to understand just how important this term “proper invoice” is: it is the cornerstone of the legislation. Section 7(1) sets out what must be included in an invoice for it to be a “proper invoice”.  Many of the requirements are typical of what most general contractors already require. There are seven requirements, plus anything else that may be eventually prescribed in regulation.

However, a “proper invoice” only applies to contractors with a direct contract with an owner. Like Highlander, there can be only one “proper invoice”, and that is the invoice issued by the contractor to the owner. Subcontractors do not submit “proper invoices” to a contractor and do not have to follow the requirements of Section 7(1) but still have to follow their contract.

The owner has 7 days to notify the contractor if an invoice does not meet the requirements of a proper invoice under Section 7(1). If no written notice is given, the invoice is deemed to be a proper invoice and the payment timelines proceed (Section 7(2)).  This means that even if an invoice submitted by a contractor does not comply with the section 7 requirements for a proper invoice, if an owner fails to formally challenge the invoice in time, the legislation deems the contractor’s invoice to be a proper invoice.

If you are the head contractor engaged by the owner, unless your contract specifies otherwise, you must invoice monthly (Section 5 Regular Invoicing). The Bill allows freedom to contract, so a proper invoice may be tied to milestones or another agreed basis if set out in your contract. For example, the contract could state that an invoice is to be submitted every 3 months or once a prefabricated component is delivered to the site. And that is allowed under the Bill. So, it will still be necessary to read your contract and understand the payment triggers.

However, once a proper invoice is submitted, the legislation takes effect and the payment timelines set out under the law begin to run.

Yes, it does but not enough in our opinion.

Introduced along with the Bill are targeted amendments to the BLA to eliminate “Shimco liens”. We welcome those changes as Shimco liens were confusing for all. The Bill also shortens the time for release of holdback from 55 days to 46 days, which is positive for getting holdback paid out, however it still contains a permissive “may” regarding its release.

Beyond that, there are no large-scale changes to the Builders Lien Act at this time, particularly around progressive and mandatory release of holdback, which are critical to true payment certainty. Prompt payment and the lien system work together, but BC’s lien system is outdated and must be modernized to reflect the realities of today’s construction industry. BCCA will continue to press government for comprehensive reform of the Builders Lien Act but we welcome these amendments.

The Bill sets the framework for prompt payment and adjudication, but because it doesn’t include modernization of the BLA, it does not include these critical elements to payment certainty.

However, at the end of the lien holdback period, lien holdback monies can be adjudicated under the new system as they are properly the subject of a proper invoice, meaning they will be treated the same as any other payment obligation. This is a step forward. We continue to advocate strongly for modernization of the Builders Lien Act to ensure fair and timely release of lien holdback.

Yes and no but not in the way you might think. The legislation would effectively enshrines this concept into law but only if the contractor gives written notice to its subcontractors that it did not receive payment. If a contractor is paid, they must flow that payment down the supply chain. If they are not paid and they provide the required notice, they are not obligated to pay.

Parties may withhold payment only when they have provided:

  • Written notice specifying the reason and amount, and, if applicable,
  • Upstream notice of non-payment, and
  • Undertaking to refer the dispute to adjudication within 21 days.

If you are not paid but forget to give the required notice, you are obligated to pay.

In our opinion, gone will be the days of “sorry! We didn’t get paid. Check back in a few weeks.”

We believe this process is designed to ensure transparency and fairness: non-payment must be justified and documented.

The 28-day payment period, equivalent to four weeks, reflects a standard used in other Canadian provinces with prompt payment legislation. It gives owners sufficient time to review and process invoices while maintaining predictable cash flow for contractors and trades. The additional timelines, such as 7 days for payment down the supply chain and 14 days for notices of non-payment, are consistent with those used in other jurisdictions and were set by government as part of Bill 20.

No. The Bill requires payment of the earlier of two dates: when payment is due or within 7 days of receiving payment. If a contractor is paid early by the owner, under Section 9(1)(b)(i), contractors must flow payment down within 7 days of receiving it. For example, if an owner pays on Day 18, the contractor must pay its subcontractors by Day 25.

The owner has 14 days from the date of the proper invoice to issue a notice of non-payment. If no notice is given within that time, the owner must pay the full invoice. Contractors have the same obligation with their subcontractors under Section 11(2)(b): if they do not provide timely notice of non-payment, they must pay.

The owner, a contractor or subcontractor can make only a partial payment (Section 10) of the invoice but they must give notice for the unpaid portion. The owner must still pay the portion of the invoice that is not in dispute and can withhold only the amount they believe is not owed.

The key trigger is the submission of a proper invoice by the contractor to the owner. Section 12 of the Bill 20, together with Section 41 of the Builders Lien Act, gives subcontractors strong rights to request and receive information about that invoice and other payment details. Both create a legal obligation for the requested party to provide the information. Because the date of the proper invoice is what starts the clock on payment timelines, BCCA strongly recommends that subcontractors immediately request from the contractor the date the proper invoice was submitted. Knowing when the clock starts ensures you can track deadlines, monitor compliance, and protect your right to timely payment.

No. Under the Bill you may only suspend work if an adjudicator has issued a determination requiring payment and the other party fails to pay you within 15 days (Section 34). In that case, suspension is permitted under the Bill, and you are entitled to payment for reasonable costs associated with stopping and resuming work (Section 35).

Section 16 sets out the matters that can be disputed and the scope is broad. It includes in part:

  • Failure to make a payment
  • Whether an invoice is a proper invoice
  • Failure to give a proper invoice
  • Matters relating to a notice of non-payment
  • Evaluation of services or materials supplied under the contract
  • Change orders, whether approved or proposed
  • Any other matter the parties agree to submit to adjudication.

The Bill establishes adjudication as a fast, cost-effective process compared to litigation to resolve payment disputes and keep projects moving. It establishes and outlines the role of the adjudication authority (Part 5), the types of matters that can be adjudicated (Section 16), and the general framework for how decisions are made. BCCA will issue more guidance and resources on adjudication as we get closer to enactment.

Establishing the Authority is one of the major steps in bringing the legislation into force and will be established by government as part of implementing the legislation. Its role will be to oversee the adjudication system, including maintaining a roster of qualified adjudicators, education and setting fees (Section 42). It is crucial that the adjudication authority is seen as independent and is anticipated to be self-sustaining. There are experienced organizations from other jurisdictions; BCCA will not serve as the adjudication authority but will work collaboratively with government and whichever experienced entity is selected.

Establishing the Authority is one of the major steps in bringing the legislation into force and will be established by government as part of implementing the legislation. Its role will be to oversee the adjudication system, including maintaining a roster of qualified adjudicators, education and setting fees (Section 42). It is crucial that the adjudication authority is seen as independent and is anticipated to be self-sustaining. There are experienced organizations from other jurisdictions; BCCA will not serve as the adjudication authority but will work collaboratively with government and whichever experienced entity is selected.

Bill 20 does not set this out directly: the regulations will. Section 42 of the legislation assigns the adjudication authority the duty of qualifying persons who meet the regulatory requirements. In other jurisdictions, adjudicators are experienced industry professionals, often including superintendents, estimators, project managers, quantity surveyors, and lawyers.

Adjudication will have associated fees, which are the administrative fees and adjudicator’s fees (Section 24(1)). The exact administrative fee structure will be set by the adjudication authority (Section 43(1)(c)) and the adjudicator’s fees will either be agreed to by the parties or set by the adjudication authority. Both parties share these costs equally (Section 24(2)) unless the adjudicator decides otherwise in their determination because a party is being vexatious, abusing the process or not acting in good faith (Section 32(2)). This approach, similar to other jurisdictions, ensures that adjudication remains a fast and cost-effective alternative to litigation (and project delays!)

An amount determined by an adjudicator’s determination must be paid within 15 days after the determination is issued (Section 34). If the party required to pay fails to do so, the other party may suspend work until payment is made and is entitled to recover reasonable costs associated with suspending and resuming work (Section 35) and interest also begins to accrue (Section 38). Adjudication decisions can also be filed in court for enforcement (Section 36), providing a clear and timely remedy for non-payment.

Adjudication decisions are binding on an interim basis, meaning they must be followed even if one party disagrees (Section 31). Either party can later challenge the decision through court (Division 6) or may come to a different outcome via arbitration (Section 31). However, generally, payment or compliance with the determination must still occur: you cannot ignore or delay it simply because you disagree with the outcome.

No… and yes.

No, because under Section 6(1) any clause making the giving of a proper invoice conditional on certification by a payment certifier or the approval of the owner is void.  In other words, payment certification processes cannot block or hold up a contractor submitting a proper invoice and triggering the prompt process under the legislation.  This means that you cannot contract out of the legislation. Prompt payment timelines are triggered by the submission of a proper invoice, not by advance certification or approval.

Yes, because payment certifiers (often the consultant) still play an important contractual role in reviewing progress on site and verifying that applications for payment reflect work completed. Those mechanisms can still be prescribed in the contract, as seen in CCDC and CCA standard form contracts, but the responsibility for payment rests with the owner.

If a payment certifier is slow in certifying, that does not stop the clock. The timelines under prompt payment continue to run, and the owner will still be required to pay unless they issue a valid notice of non-payment. Payment certifiers continue to exist under the Builders Lien Act and within standard contracts, but under prompt payment their role is not a condition for the functioning of the legislation.

If a payment certifier is slow in certifying, that does not stop the clock. The timelines under prompt payment continue to run, and the owner will still be required to pay unless they issue a valid notice of non-payment. Payment certifiers continue to exist under the Builders Lien Act and within standard contracts, but under prompt payment their role is not a condition for the functioning of the legislation.

Members Only Webinar FAQ – Understanding BC’s New Prompt Payment Act (Bill 20)  – From October 20, 2025

Yes. Suppliers are included in the definition of “subcontractor,” and the legislation also defines “material” to ensure suppliers of goods and equipment are covered. Because suppliers are typically further down the supply chain, their statutory payment timelines will likely fall around 42 to 49 days or longer after the proper invoice is submitted to the owner. While it may seem unfair that suppliers wait longer than the 28 days given to the contractor, these timelines reflect the payment flow through multiple tiers of the supply chain. However, nothing prevents a supplier from negotiating a contract with specific milestone, including delivery-based payment triggers that allow for earlier payment.

Note: this answer is pending legal review.

Yes. Consultants, including architects and engineers, are included within the definitions of those providing services to an “improvement.” However, the Act allows government to exclude certain types of work or services through regulation, if they so choose. Until those regulations are released, consultants are considered covered, but this could change once the regulations are known. This uncertainty is consistent with much of the legislation’s applicability: we simply will not know until the regulations are in place.

Note: this answer is pending legal review

No. A proper invoice only applies to the contractor’s invoice to the owner. Remember: like Highlander, there can be only one.

This will be addressed in the forthcoming regulations, but yes, there will be a prescribed form.

Not those existing prior to the enactment date. Once in force, the Act will apply only to new prime contracts entered into after the enactment date. Prime contracts signed before that date, and any subcontracts tied to them, will not be covered. Subcontractors will need to ask for the date of the prime contract before assuming Prompt Payment Legislation will apply to that contract and project because depending on the type of work you do, that prime contract could have been signed months or even years before you are engaged.

BC is not currently using P3s for capital project delivery, but the legislation allows future flexibility under Section 3 (Substituted Owners) and Section 49 (Regulations). In our opinion, this is an area that can be refined through regulation should and when necessary.

Note: this answer is pending legal review.

For now, our advice is to continue to bid as normal until more is known about applicability and the enforcement date. As we get closer, it will be important to confirm the signing date of the prime contract, since the legislation will only apply to contracts entered into after enactment. For existing templates, if you are already using standard contracts issued by CCDC or CCA after 2020, prompt payment is already reflected in the language, so minimal adjustment should be required.

We are aware of this practice in other jurisdictions, and it’s disappointing. Section 6(1) of the Act (Approval and Testing) makes clear that any contract clause requiring the approval of the owner before submitting a proper invoice is void. While an owner may ask to see a draft, that does not prevent a contractor from submitting their proper invoice and starting the payment timelines.

Note: this answer is pending legal review.

Not every project uses CCDC or CCA standard form contracts. In our view, the legislation was drafted for broad applicability across all types of construction projects and contract forms. While that approach may omit some of the detailed requirements found in standard form contracts, it ensures the legislation captures the full range of “improvements” and industry participants covered under the Act.

It already is. CCDC and CCA contracts issued after 2020 were updated to incorporate “payment legislation” as a defined term, so the concepts are already built into the language. Now is the time to make the switch to the most current versions of these standard contracts.

This is another tricky and nuanced question because the Builders Lien Act and Prompt Payment Legislation are separate. Bill 20’s Section 12 focuses generally on the date of the proper invoice, while Section 41 of the Builders Lien Act provides a wider right to financial details. They will work in tandem to provide broad right to information.

Section 12 of Bill 20 Construction Prompt Payment Act gives subcontractors the right to request information, but only from the contractor they have a direct contract with. It does not allow them to go straight to the owner and is focused on the proper invoice. However, Section 41 of the Builders Lien Act, which already applies, gives broader rights lienholders to certain information, including statements of account between the contractor and the owner.

Used together, they will give subcontractors meaningful access to the information needed to track payment timelines. Remember, Section 41 of the BLA applies now: review it, understand it, and use it.

Note: this answer is pending legal review.

Yes, and you would state those details as the reason for non-payment.

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