Construction projects do not always go according to plan. When contractors, subcontractors, suppliers, or workers are not paid for work or materials provided to a project, one of the most powerful remedies available in British Columbia is a builder’s lien.

Understanding how builder’s liens work, the strict deadlines involved, and the consequences of missing those deadlines is critical for anyone involved in a construction project.

What is A Builder’s Lien?

A builder’s lien is a claim registered against title to a property under British Columbia’s Builders Lien Act. It may be filed by a contractor, subcontractor, worker, or supplier who has provided work, labour, services, or materials to a construction project and has not been paid.

A builder’s lien does not guarantee payment, but it creates a legal interest in the property that can significantly affect the owner’s ability to sell, refinance, or otherwise deal with the property.

The minimum lien claim that can be filed is $200.

Who Can File a Builder’s Lien?

Depending on the circumstances, a builder’s lien may be filed by:

• General contractors;
• Subcontractors;
• Workers; and
• Suppliers who provided materials to an improvement.

Not every unpaid invoice automatically gives rise to a valid lien claim. Whether a lien is available depends on the nature of the work performed, the materials supplied, and the relationship between the parties involved in the project.

When Must a Builder’s Lien Be Filed?

Builder’s lien deadlines are strict.

In most cases, a lien must be filed within 45 days of:

• The issuance of a Certificate of Completion;
• Completion, abandonment, or termination of the head contract; or
• Completion or abandonment of the improvement where no head contract exists.

Missing the deadline will generally result in the loss of lien rights.

Because determining the correct deadline can sometimes be complicated, it is important to seek legal advice as early as possible.

What Information Is Required to File a Builder’s Lien?

To prepare a builder’s lien, we generally require:

• Details of the work, labour, services, or materials provided;
• The amount claimed;
• Information regarding when payment became due;
• The names and addresses of the parties involved;
• Copies of contracts and agreements;
• Copies of invoices and payment records; and
• The civic address or Parcel Identifier (PID) of the property.
• This can be found on BC Assessment and we can assist you with this.

We recommend contacting a lawyer at least one week before the filing deadline to ensure there is sufficient time to prepare and review the claim.

What we Need

At least 3 business days ahead of the 45-day deadline, we need the following:

1. Details about the claim, such as:
   • the work, labour, services and/or materials provided and unpaid;
   • the amount owing;
   • when the amount was and/or will be due; and
   • the names and addresses of the claimant (you) and the party you contracted with;
   • a copy of all of your contracts; and
   • a copy of all invoices rendered and details relating to any payments received.
2. A civic address or the Parcel Identifier (PID) for the property that you are claiming a lien against. This can be found on BC Assessment and we can assist you with this.

What Happens After a Builder’s Lien Is Filed?

Filing a lien is only the first step.

Many disputes resolve shortly after a lien is registered because the parties enter into negotiations or reach a settlement.

However, if the dispute remains unresolved, additional legal action may be required to preserve and enforce the lien. A builder’s lien does not remain on title indefinitely. Unless court proceedings are commenced and additional steps are taken, a lien generally expires one year after it is filed.

How Do You Enforce a Builder’s Lien?

To preserve a lien beyond the one-year period, the lien claimant must generally:

1. Commence a lawsuit in the BC Supreme Court; and
2. Register a Certificate of Pending Litigation (CPL) against the property.

These steps effectively replace the lien as the mechanism securing the claim against the property while the lawsuit proceeds.

If these steps are not taken in time, the lien may be removed from title.

What Is a Notice to Commence an Action?

Property owners and other interested parties may serve a Notice to Commence an Action on a lien claimant.

When this occurs, the deadline becomes much shorter.

The lien claimant must generally commence a lawsuit and register a CPL within 21 days of receiving the notice. Failure to do so can result in the lien being cancelled.

Because the consequences of missing this deadline are significant, legal advice should be obtained immediately upon receiving a Notice to Commence an Action.

Can There Be Consequences for Filing an Improper Lien?

Yes.

The Builders Lien Act contains penalties for knowingly filing a lien that contains false information.

For this reason, it is important to carefully review all information supporting the lien claim and ensure that the amount claimed is accurate and properly supported.

We Can Help

Whether you are seeking to file a builder’s lien, remove a lien from your property, respond to a Notice to Commence an Action, or enforce an existing lien through the courts, our litigation team can assist.

If you have questions regarding a construction dispute or builder’s lien claim, please contact our office at 604.853.0774 to meet with a member of our General Civil Litigation Team.