Holdback Requirements for BC Renovations Under the Builders Lien Act
BC Builders Lien Act Holdback Requirements
BC’s Builders Lien Act requires a 10% holdback on all construction contracts, retained until the lien period expires. This is a legal requirement — not just a good practice — for most construction work in BC.
How the Holdback Works
- You must retain 10% of all payments made to your contractor
- The holdback is retained until 55 days after substantial completion
- During those 55 days, subtrades and suppliers can file liens for unpaid work
- After 55 days with no liens filed, release the holdback
- If liens are filed, the holdback funds are kept pending resolution
Example: $100,000 Kitchen Renovation
Contract signed: retain 10% = $10,000 holdback throughout construction. At substantial completion: have paid $90,000. Wait 55 days. If no liens filed by subtrades or suppliers, release the final $10,000.
Why This Protects You
If your contractor fails to pay their subtrades (electrician, plumber, tile setter), those subtrades can file liens against YOUR property for unpaid amounts — even if you paid the general contractor in full. The holdback ensures you have funds to address any such liens.
→ See also: Vancouver Renovation Planning Guide
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