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On October 7, 2025, British Columbia introduced Bill 20 – 2025 Construction Prompt Payment Act. On November 27, 2025, Bill 20 received Royal Assent. Bill 20 however has not yet come into force.
Bill 20 aims to address payment delays and increase cash flow stability within the construction industry by setting mandatory deadlines for payment, establishing an interim adjudication process and making changes to the Builder's Lien Act. This marks the first step in BC's shift to align with the prompt payment regimes seen in Ontario and Alberta.
Who does this effect?
Bill 20 proposes industry-wide changes, affecting both private and public construction projects in BC, subject to specific exemptions to be detailed in regulations.
Major change #1 – Prompt Payment
As currently drafted, Bill 20 proposes a strict flow of payment:
- Trigger: Contractor delivers a proper invoice to the owner.
- Day 28: Owner pays the contractor.
- Day 35: Contractors pays subcontractors within 7 days of the owner's payment.
- Day 42: Subcontractors pay sub-subcontractors within 7 days of the contractor's payment.
- Day 49: Sub-subcontractors pay the following tier within 7 days of the sub-contractors payment, and so on.
Owners and contractors must pay special care to ensure proper invoicing. The requirement to deliver a proper invoice applies only to contractors with direct contact with an owner. Proper invoice refers to the written request for payment provided by the contractor to the owner, in compliance with prescribed requirements under section 7(1). Proper invoices are to be delivered every 30 days, but the owner and the contractor may contract to deviate from this deadline.
In the event the contractor fails to provide a proper invoice, the owner must provide written notice to the contractor within 7 days from the delivery of the invoice. The owner's written notice must state that the invoice fails to meet section 7(1) and set out what is required to bring the invoice into conformance. If no written notice is provided, the invoice will be deemed to be a proper invoice irrespective of its contents.
Major change #2 – Fast Track Adjudication
To efficiently resolve payment-related disputes, limit delays and avoid costly litigation, Bill 20 proposes an interim adjudication process.
An adjudication authority can oversee a broad range of payment-related disputes, including a party's failure to pay, whether an invoice constitutes a proper invoice, valuation of services or materials and implications arising from changes to the scope of work. Parties may further agree for non-prescribed matters to be adjudicated or for multiple disputes to be heard simultaneously.
In line with the prompt payment regime, Bill 20 prescribes strict deadlines for adjudication. If the dispute relates to a contract between an owner and a contractor, the party wishing to trigger adjudication must deliver notice within 90 days of the completion, abandonment or termination of the prime contract. For subcontracts, notice must be delivered within 90 days from the earliest of i) the completion, abandonment or termination of the prime contract; ii) the date of the subcontract's certificate of completion; or iii) the date the subcontractor last supplies services or materials. As currently drafted, the parties must pay the adjudicated amount within 15 days of the determination.
BC aims to create an adjudication authority to oversee the adjudication regime and maintain a roster of qualified adjusters. The authority will also determine fees applicable to the adjudication process. Unlike Ontario, Bill 20 does not allow for an adjudicator to be privately appointed by the participating parties. The regulations are expected to detail the requirements for an individual to be appointed an adjudicator.
Major change #3 – No More Shimco Liens
Bill 20 includes amendments to the Builder's Lien Act to facilitate prompt payment.
Most notably, Bill 20 proposes to abolish the Shimco lien that is unique to BC. The Shimco lien allows for subcontractors to assert a claim specifically against the 10% statutory holdback. If implemented, this will be welcome news to owners, who are currently required to retain the statutory holdback for prime contractor-related claims, but are subsequently exposed to claims by unpaid subcontractors.
Bill 20 also aims to reduce holdback period from 55 to 46 days and broadens "improvement" to capture demolition or removal of improvements.
When will the changes occur?
The introduction of Bill 20 started the process of implementing the prompt payment regime in BC. Following the Royal Assent, the government will now draft the regulations. In the meantime, stakeholders can prepare by ensuring their contracts will comply with proper invoicing and prompt payment, and participating in education sessions, including those provided by British Columbia Construction Association.
Stay tuned as the Construction Group at DWF will continue to monitor the progress of Bill 20 and provide timely updates. The Construction Group has extensive experience with prompt payment regimes and are well equipped to guide your business through the changes in BC construction landscape.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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