Builders’ Liens in British Columbia: What You Can Actually Lien For (And What You Can’t)
In construction disputes, the word “lien” gets used quickly.
“I’ll just lien the property.”
“They can’t lien me for that.”
“We’ll register a lien if they don’t pay.”
In British Columbia, a builders’ lien is a powerful tool. But it’s not a catch-all remedy. You cannot always lien for everything you think you're owed, and getting it wrong can be expensive.
Here’s what the Builders Lien Act actually allows, and where people tend to make mistakes.
What Is a Builders’ Lien?
A builders’ lien is a legal claim registered against land to secure payment for work or materials supplied to a construction project.
It gives contractors, subcontractors, and suppliers leverage. If payment isn’t made, the dispute can be forced into court, and in some cases the property can ultimately be sold to satisfy the claim.
That leverage is real. But it only applies to certain types of claims.
What You Can Lien For
Under the Builders Lien Act, a lien is available for the value of:
- Work performed
- Materials supplied
…in relation to an improvement to land.
An “improvement” generally means construction, alteration, repair, or demolition of a building or structure. It can also include site preparation and excavation if the work physically improves the land.
Typical lienable claims include:
- Unpaid invoices for labour on a project
- Materials delivered and incorporated into the work
- Subcontractor work that remains unpaid
- Services directly tied to physical construction
If you improved the land and were not paid, a lien may be available.
What You Cannot Lien For
This is where many claims run into trouble.
A builders’ lien is not a general debt collection tool. You cannot lien for every type of loss arising out of a construction contract.
For example:
- Lost profits on work you never performed
- General breach of contract damages
- Many delay claims
- Back charges or penalty claims
- Pure consulting services that did not result in a physical improvement
If a contract is terminated halfway through and you claim profit on the unfinished portion, that amount is usually not lienable. A lien secures payment for work actually performed and materials actually supplied. It does not secure every dollar that might be claimed in a broader dispute.
Overstating a lien can expose you to risk.
Deadlines Matter
In most cases, a builders’ lien in BC must be filed within 45 days of:
- Issuance of a certificate of completion
- Completion of the project
- Abandonment
- Termination
Miss that deadline and the lien right is typically gone.
Filing the lien is only the first step. You must also start a court action and register a certificate of pending litigation within one year of filing the lien. If you do not, the lien can expire.
The timelines are strict. Courts do not generally excuse missed deadlines.
Be Careful With the Amount
Registering an inflated lien as a pressure tactic is a mistake.
If a court determines that a lien was filed for an exaggerated or improper amount, it can cancel the lien and award costs. In some cases, there may be exposure for damages arising from a wrongful lien.
A lien should reflect a defensible amount tied to actual unpaid work and materials.
The 10% Holdback
BC’s lien system also includes a statutory 10 percent holdback. Owners are generally required to retain 10 percent of the contract price to protect against lien claims.
This holdback is designed to create a fund against which valid lien claims can attach. It also means owners, contractors, and subcontractors all have an interest in making sure the paperwork and timing are handled properly.
Practical Questions to Ask Before Filing
Before registering a lien, consider:
- Was there an actual improvement to land?
- Is the amount limited to unpaid work and materials?
- Are you within the 45-day deadline?
- Is the correct owner identified on title?
A properly filed lien can bring a payment dispute to a head quickly. An improper lien can complicate things and increase exposure.
Bottom Line
Builders’ liens in British Columbia are powerful, but they are narrow in scope. They secure payment for work performed and materials supplied in connection with an improvement to land. They do not secure every claim arising from a construction contract.
If you are unpaid on a project, timing and accuracy are critical. If a lien has been registered against your property, acting quickly is just as important.
Before filing a lien, or assuming one is invalid, it makes sense to get advice. In construction disputes, small procedural mistakes can have significant financial consequences.
If you need assistance with a builders’ lien issue, contact our office to discuss your situation and next steps.