Whether a simple home renovation or a complex commercial build, construction projects often lead to payment disputes. Multiple parties, tight timelines, and contractual obligations make payment disputes common. When disputes arise, the appropriate filing of a builders’ lien can be the difference between a secured claim or an unsecured loss.
Understanding how builders’ liens work in British Columbia can help avoid costly surprises and protect your rights.
What Is a Builders’ Lien?
A builders’ lien is a legal claim registered against a property by someone who has supplied work or materials to a construction project, but has not been paid. In British Columbia, the Builders Lien Act, SBC. 1997, c. 45, gives contractors, subcontractors, workers, and material suppliers the right to claim a lien against the land for the unpaid price of that work or material.
Once registered, a lien attaches to the property’s title and can prevent the owner from selling the property, refinancing, or accessing further construction draws until removal. For these reasons, liens often put significant strain on property owners and are an effective tool used by contractors as leverage in a payment dispute.
When Can a Builders’ Lien Be Used?
Lien rights arise when payment for work or materials remains outstanding, but strict deadlines apply. In most cases, a claim of lien must be filed within 45 days of the issuance of a certificate of completion. If no certificate is issued, then a claim of lien must be filed within 45 days of key events, such as completion, termination, or abandonment of the head contract between the owner and general contractor, or completion of the project if no head contract exists.
Filing the lien is just the first step. To maintain it, the claimant must commence a court action in the Supreme Court of British Columbia within one year, though that timeline can be shortened.
Accuracy is critical. A lien claim must reflect the actual unpaid value of work or materials provided. Improper or inflated claims can expose the claimant to legal risk, including liability for damages where an owner incurs costs to remove a lien later found by the court to be invalid.
How Can a Builders’ Lien Be Removed?
Because a builders’ lien can disrupt financing and delay transactions, its removal from title is often an urgent priority. There are several ways to remove a lien from title, and the appropriate approach will depend on the circumstances and the urgency required.
The most common approach is to post security in place of the lien. This may involve paying funds into court or a law firm’s trust account or providing alternative forms of security such as a lien bond. Once security is posted, the lien is removed from title, allowing the owner to proceed with a sale, refinancing, or construction financing, while the underlying dispute continues separately against the security rather than the land.
In limited circumstances, a lien may be removed through a court application where it has expired, the underlying claim has been resolved, or the lien is otherwise defective or improperly filed. Courts also have the authority to cancel liens that are frivolous, abusive, or filed against the wrong property, though such relief is granted sparingly.
Final Thoughts
British Columbia recently introduced the Construction Prompt Payment Act, S.B.C. 2025, c. 24. Once brought into force, the legislation will establish mandatory payment timelines, a streamlined adjudication process, and additional tools to address payment disputes more efficiently.
Builders’ liens are a powerful legal tool, but they are also a frequent source of confusion and conflict. Whether you are building a family home, investing in property, or managing a development project, a clear understanding of lien rights can help prevent costly delays and drawn-out disputes. When payment issues arise, seeking timely legal advice can make a meaningful difference in preserving your rights.
