When does the BC builders lien period end?

Under BC's Builders Lien Act, a claim of lien must be filed within 45 days, and the starting point depends on whether a certificate of completion was issued.

• If a certificate of completion was issued, a lien may be filed no later than 45 days after the date the certificate was issued.
• If not, it may be filed no later than 45 days after the head contract was completed, abandoned or terminated, where the owner hired a head contractor. Where there is no head contractor, the 45 days run from when the improvement itself was completed or abandoned.

The Act treats an improvement as completed when it, or a substantial part of it, is ready for use or is being used for its intended purpose. A certificate of completion is issued by the payment certifier named in the contract (an architect, engineer or other person), or by the owner if no one is named, at a contractor's or subcontractor's request. The claim of lien itself is filed in the land title office.

The holdback

For homeowners, the related rule is the Builders Lien Act holdback: the owner paying under the contract must retain a holdback equal to 10% of the greater of the value of the work and material provided or the payment made. Under the Builders Lien Act, the holdback period ends 55 days after the certificate of completion is issued or, without one, 55 days after the head contract is completed, abandoned or terminated. After that, the holdback may be paid out, and liens are discharged unless a claim of lien was filed in the meantime. Where the total value of work and material is $100,000 or more, the Act also requires the owner to keep the holdback in a holdback account at a savings institution.

If a lien is filed against your property. The Act lets an owner apply to court to have a lien cancelled on giving sufficient security, and lets a payor pay money into court. The Civil Resolution Tribunal lists builders' liens among the claims it cannot take, so this goes through the courts. Lien deadlines are strict, so get legal advice early if you are on either side of a lien.

Before work starts, ask your contractor how the holdback will be handled on each payment, and put that in the written contract. You can describe your project through the Vancouver Construction Network to be matched with local contractors.