Builders Lien Act holdback in BC

Published 6 November 2026 · Pantheon Strategic Ltd

How much is held, who holds it, when the 55-day clock starts and how subtrades can get their holdback released early, straight from the Act.

If you work in construction in British Columbia, 10% of almost every invoice you send gets held back, and many contractors only half understand why, for how long, or how to get it released. The rules come from one statute, the Builders Lien Act, and they're shorter and clearer than most people expect. This guide walks through the Builders Lien Act holdback in plain language: how much is held, who holds it, when the clock starts, and the practical steps that get your money released on time. Everything here comes from the Act as published on BC Laws, current to October 6, 2026. It's general information, not legal advice; for a specific dispute, talk to a construction lawyer.

What the Builders Lien Act holdback is

Section 4 of the Act says the person primarily liable on each contract, and on each subcontract, under which a lien may arise must retain a holdback equal to 10% of the greater of:

• the value of the work or material as actually provided under the contract or subcontract, and
• the amount of any payment made on account of the contract or subcontract price.

That obligation applies whether the contract pays in progress draws or on completion. So an owner holds back from the general contractor, the GC holds back from each subtrade, and a subtrade holds back from its own subs. Each holdback is charged with paying everyone engaged under the person it was retained from.

Who isn't held back from

The Act says a holdback must not be retained from a worker, a material supplier, an architect or an engineer. If you only supply material, nobody should be holding 10% of your invoices under the Act.

A quick example

You're a subtrade on a $200,000 subcontract. Your first progress claim is for $50,000 of work completed. The GC retains 10% of $50,000, which is $5,000, and pays you $45,000. By the end of the job, if the full $200,000 has been provided, $20,000 sits in holdback waiting for the holdback period to expire.

The holdback account: when the owner must open one

Section 5 requires an owner to set up a holdback account at a savings institution for each contract under which a lien may arise, pay the holdback into it, and administer it together with the contractor. Money in the account is held in trust for that contractor, subject to liens, and can't be paid out without the agreement of everyone who administers the account.

Two exceptions matter. The account requirement doesn't apply to the government, government corporations or other designated public bodies, and it doesn't apply where the total value of work and material on the improvement is less than $100,000. And there's a lever for contractors: if an owner fails to pay the holdback into the account, the Act treats that as a default under the contract, and the contractor may, on 10 days' notice, suspend work for as long as the default continues.

When the holdback is released

The holdback is paid out after the holdback period expires. Section 8 sets that period:

Once the holdback is paid after the period expires, the liens of the person paid, and of anyone engaged under them, are discharged unless a claim of lien has been filed or proceedings started in the meantime. "Completed" in the Act means substantially completed, not totally completed.

Lien filing deadlines run alongside

Section 20 sets a matching deadline for claims of lien: 45 days after the certificate of completion is issued for that contract or subcontract, or, without one, 45 days after the head contract is completed, abandoned or terminated (or, where there's no head contractor, after the improvement is completed or abandoned). If you need to lien, those 45 days are the window, and the Act extinguishes a lien that isn't filed as required.

The certificate of completion: the tool subtrades underuse

If you finish early on a long project, say you're the excavation or concrete sub on a two-year building, waiting for the whole project to finish means your holdback sits for years. Section 7 gives you a way out. On the request of a contractor or subcontractor, the payment certifier must, within 10 days, decide whether the contract or subcontract has been completed and, if it has, issue a certificate of completion. The certifier is the architect, engineer or other person named in the contract, or, if nobody is named, the owner (for the contractor) or the owner and contractor together (for subcontractors).

Within 7 days of issuing it, the certifier must deliver copies to the owner, the head contractor and you, and post a notice of certification of completion on the site. If the certifier refuses or fails to act, you can apply to court for an order declaring your subcontract complete, and a certifier who fails or refuses without reasonable excuse can be liable to anyone who suffers loss as a result. Section 9 then lets the contractor receive from the owner's holdback an amount equal to the holdback on your completed subcontract, once its holdback period expires with no liens filed.

Practical steps:

1. Request the certificate in writing as soon as your scope is substantially complete.
2. Diary day 10 for the decision and day 55 after issue for release.
3. Diary day 45 after issue as your own lien deadline, in case the money doesn't come.
4. Invoice the holdback on day 56.

Money received is held in trust

Section 10 adds a rule that catches some growing companies off guard: money a contractor or subcontractor receives on account of the contract price is a trust fund for the benefit of the people it engaged on that improvement, and the contractor is the trustee. Until those people are paid, the contractor must not use the money for its own purposes. Using one job's progress payment to cover another job's payroll, while the first job's subs go unpaid, is exactly what this section prohibits.

Why holdback is a growth issue, not just a legal one

Ten percent of revenue sitting in holdback, across several jobs, is a cash flow problem waiting to happen, especially when a company starts taking larger commercial work. Tracking holdback by job, requesting certificates early and invoicing release on time are habits that protect working capital. If a contract is bonded, the surety side is covered in our guide to surety bonds for contractors.

Getting the office systems right as you grow is the kind of work in our Construction Industry and Roadblocks & Diagnosis pillars, including construction process improvement from estimate through close-out, listed in our service catalogue. We're not lawyers and don't give legal advice, but we can help you build the process so holdback stops being a surprise. Start with a free conversation.

Frequently asked questions

How much is the holdback under BC's Builders Lien Act?

10% of the greater of the value of the work or material actually provided under the contract or subcontract, and the amount of any payment made on account of the price.

When is the Builders Lien Act holdback released?

After the holdback period expires: 55 days after a certificate of completion is issued, or, without a certificate, 55 days after the head contract is completed, abandoned or terminated (or, where there's no head contractor, after the improvement is completed or abandoned).

Do material suppliers have holdback retained in BC?

No. The Act says a holdback must not be retained from a worker, a material supplier, an architect or an engineer.

Does the owner have to open a holdback account?

Generally yes, for each contract under which a lien may arise, but not where the owner is the government or a designated public body, or where the total value of work and material is less than $100,000.

How long do I have to file a builders lien in BC?

45 days after the certificate of completion is issued for your contract or subcontract, or, without one, 45 days after the head contract is completed, abandoned or terminated (or, where there's no head contractor, after the improvement is completed or abandoned).