In response to widespread concerns about delayed payments to contractors and subcontractors on construction projects, several jurisdictions—including Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and the federal government (for federal projects)—have enacted prompt payment legislation. Other provinces are considering similar measures.

In British Columbia, Bill M-233 (Prompt Payment (Builders Lien) Act, 2019) was introduced in May 2019 but did not pass into law. However, in April 2025, the Attorney General directed Ministry staff to prepare a proposal for prompt payment legislation for the government’s consideration.

As a result, it now appears likely that BC will introduce prompt payment legislation, and soon. The details remain unknown, it is reasonable to expect that the legislation will incorporate features common in other provinces, such as:

• Mandatory payment timelines from owners to contractors, contractors to subcontractors, and so on down the construction chain;
• Required invoice content to trigger payment timelines;
• Dispute resolution and adjudication mechanisms;
• Potential changes to builders lien claim periods; and
• Transition rules for contracts entered into before the legislation comes into effect.

Supporters of prompt payment legislation argue that it improves cash flow throughout the construction industry, particularly for subcontractors and suppliers lower in the payment chain. Critics argue that it introduces additional administrative burdens and compliance costs.

Regardless of where one stands on the desirability of the legislation, anyone involved in BC’s construction industry should monitor these developments. We anticipate a significant rise in construction disputes and litigation due to (a) inconsistencies between existing contract forms and the new legislation, and (b) transitional challenges as the industry adapts to the new legal framework. Once legislation is enacted, it will be essential to ensure that contract terms align with the new requirements.

If you have any questions about upcoming prompt payment legislation and how it might affect new or existing contracts, or any general construction disputes needs, please reach out to Mark Danielson at [email protected] or 250.869.1284.