BC's Construction Prompt Payment Act, and what changes when it starts

Slow payment has been a problem in construction for as long as there has been construction. Owners pay contractors late, contractors pay subcontractors later, and the smallest firms at the bottom of the chain carry the cost. Ontario, Alberta and several other provinces passed prompt payment laws to fix this. BC has now joined them.

Where things stand

BC's Construction Prompt Payment Act (introduced as Bill 20) received Royal Assent on November 27, 2025. But as of this writing, it is not yet in force. The province ran a consultation on the regulations, which closed on July 7, 2026. The rules will take effect once the regulations are finished and the Act is brought into force. Check the province's prompt payment page for the current status before relying on any of this.

What it will require

Based on the province's summary, the main pieces are:

• Proper invoices. Payment timelines start when the contractor gives a proper invoice, as defined in the Act and regulations.
• 28 days to pay. Owners must pay a proper invoice within 28 days of receiving it.
• 7 days to dispute. If the owner disputes some or all of an invoice, it must give notice within 7 days, explaining why.
• Payment flows down. Contractors must pay subcontractors within 7 days of being paid, and so on down the chain.
• Notices of non-payment. If a contractor does not pay a subcontractor because it was not paid itself, it must give notice, within 14 days, and in some cases start adjudication.
• Adjudication. A fast, binding interim process for payment disputes, handled by qualified adjudicators, so firms do not have to wait for court.

The Act will apply to public owners as well as private ones, so BC municipalities, school districts and other public owners will be bound by the timelines on construction contracts. It will sit alongside the Builders Lien Act, including its holdback rules.

Does it cover service contracts?

The Act is about construction. Maintenance and service contracts, like janitorial, snow removal or security, may not be covered, depending on how "construction" is defined in the final rules. Renovation and repair work often is construction. Watch for the regulations, and read our guide to getting paid on public contracts for the rules that apply in the meantime.

How to prepare now

Get your invoices right. Once the Act is in force, a proper invoice starts the clock. Make sure yours include everything your contracts require: contract number, period, work done, approved change orders and backup. See change orders and extra work.

Keep records. Adjudication runs on documents. Daily logs, photos and written instructions will matter even more. See the records that protect you.

Review your subcontracts. If you are a prime contractor, you will need to pay subcontractors on the new timelines. Make sure your cash flow and contracts allow for it. See subcontracting on public work.

Know your lien rights. Prompt payment does not replace the Builders Lien Act. Holdbacks and lien deadlines will still apply.

Watch the start date. Contracts signed before the Act comes into force may be treated differently from contracts signed after. The transition rules will be in the regulations.

Why it matters for small firms

Small trades and subcontractors have the least cash cushion and the least power to chase late payment. A fixed payment timeline and a quick, affordable adjudication process shift that balance. If your business has avoided public construction work because of slow payment, this change is worth watching.

Alberta's prompt payment rules for construction are already in force. If you are looking at Alberta work, read Alberta public tenders.