BC Joins the Prompt Payment Movement: Are You Ready?
Timely Payment Takes Priority in BC
British Columbia is the latest province to tackle one of the construction industry's biggest pain points: late payment. On October 7, 2025, BC introduced the Construction Prompt Payment Act (Bill 20), following in the footsteps of Alberta, Ontario, and Saskatchewan. The message is clear: timely payment is no longer optional.
Why this Matters
Prompt payment is making its way across Canada—and Alberta is no exception. With BC now stepping in, the momentum behind prompt payment legislation is building rapidly. Chronic payment delays have long strained construction businesses, especially trades and suppliers. Bill 20 introduces firm deadlines for payment, quick dispute resolution, and clearer rules across the payment chain. The goal? Free up cash flow, reduce disputes, and keep projects moving.
Key Highlights
Owners must pay contractors within 28 days of receiving a proper invoice.
Contactors have 7 days to pay subcontractors after receiving payment.
Payment disputes go to fast-track adjudication with binding interim decisions.
Lien holdback release drops from 55 to 46 days.
Applies broadly to construction contracts in BC; regulations will set the in-force date (expected 2026).
Key Differences: BC vs. Alberta
Two notable differences stand out for contractors operating across both provinces. First, BC permits limited use of "pay-when-paid" clauses, provided proper notice is given to downstream parties. In contrast, Alberta's PPCLA generally renders such clauses unenforceable, placing more direct payment responsibility on contractors regardless of owner payment.
BC also shortens the lien holdback release period to 46 days, offering quicker access to retained funds. Alberta maintains a 60-day holdback, meaning BC contractors may benefit from slightly improved cash flow under the new legislation.
Get Ready Now!
Prompt payment legislation is. game-changer and is reshaping the way construction businesses operate across Canada. BC's adoption of these rules signals a critical shift in project risk, timelines, and cash flow. Whether you're an owner, contractor, or sub-trade, the time to adapt is now. Don’t wait until the law takes effect to get ready!
Prompt payment legislation is reshaping the way construction businesses operate across Canada. BC's adoption of these rules signals a critical shift in project risk, timelines, and cash flow. Whether you're an owner, contractor, or sub-trade, the time to adapt is now. Legally Built is here to help you get ahead of the changes. Connect with us today to review your contracts, streamline your payment processes, and ensure you're ready to thrive under the new regime.
This publication has been prepared for general information only and does not constitute legal advice or create a solicitor-client relationship. No reader should act or refrain from acting on the basis of any information included herein without seeking appropriate legal or other professional advice based on their particular circumstances. LEGALLY BUILT accepts no responsibility for any loss or damage that may arise from reliance on the information contained in this publication.