Missed lien deadlines in British Columbia: the 10% holdback and the 45-day clock

Most unpaid trades in British Columbia lose their strongest tool for a simple reason: the deadline passed while they were still being promised a cheque. The Builders Lien Act gives contractors, subcontractors and suppliers a lien against the land they improved, but it runs on short, fixed periods that start from events many people do not track.

This article explains the four numbers to know: the 10% holdback, the 55-day holdback period, the 45 days to file a claim of lien, and the one year to start a court action.

The 10% holdback (section 4)

The person primarily liable on each contract or subcontract that can give rise to a lien must hold back 10% of the greater of the value of the work or material provided and the payments made on account of the price. This applies whether payments are periodic or made at the end. For an owner, the holdback is the money that protects the property against liens from trades further down the chain; paying it out too early can leave the owner exposed.

When the holdback period ends (section 8)

If a certificate of completion is issued, the holdback period expires 55 days after the certificate is issued. If not, it ends 55 days after the head contract is completed, abandoned or terminated (where the owner hired a head contractor), or after the improvement is completed or abandoned (where there is no head contractor).

The 45-day clock to file a claim of lien (section 20)

Where a certificate of completion has been issued for your contract or subcontract, a claim of lien may be filed no later than 45 days after the date the certificate was issued. Otherwise the 45 days run from the completion, abandonment or termination of the head contract (if the owner engaged a head contractor), or from completion or abandonment of the improvement. Note that for a subcontractor the period can start from an event on someone else's contract, so ask the general contractor and the owner whether a certificate of completion has been issued and when the head contract was completed.

Certificates of completion (section 7)

A contractor or subcontractor can ask the payment certifier to decide whether its contract or subcontract is complete. The certifier must decide within 10 days of the request and, if the work is complete, issue a certificate. If the certifier fails or refuses, a court can declare the contract completed on application. Requesting a certificate is also how a trade that finished early can get its own holdback released sooner, but it starts that trade's own 45-day lien period.

After filing: one year, or 21 days after a notice (section 33)

A filed lien does not last forever. The claimant must start a court action to enforce it, and register a certificate of pending litigation, no later than one year after the claim of lien was filed. The owner or another lien claimant can shorten that by serving a notice to commence an action, after which the claimant has 21 days to act.

Prevention Checklist

• Owners and contractors: hold back 10% on every contract and subcontract that can give rise to a lien.
• Write down the date of any certificate of completion and the date the head contract was completed, abandoned or terminated.
• Trades: count 45 days from that date and file before it; do not wait for promised payment.
• Ask the payment certifier for a certificate of completion when your part is done, knowing it starts your own 45-day period.
• After filing, diarise the one-year deadline to start an action, and act within 21 days if you are served a notice to commence.
• Get legal advice before filing: a wrong amount or wrong land description can create liability.

References

1. Province of British Columbia (BC Laws). Builders Lien Act, S.B.C. 1997, c. 45, Consolidated, as published on BC Laws, ss. 4, 7, 8, 20, 33. Accessed 2026-11-01.

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