B.C. government introduces prompt payment legislation

Key Takeaways:

• Bill 20, the Construction Prompt Payment Act, sets clear payment timelines for construction projects with 28 days for owners to pay general contractors and seven days for contractors to pay subcontractors, including an adjudication system for disputes
• The legislation is strongly supported by major industry associations who cite long-standing payment delays that strain finances, increase costs, and limit growth for small construction businesses in B.C.’s $28–29 billion sector
• Industry leaders stress that additional regulations, lien act updates, and effective enforcement are needed to ensure the legislation delivers predictable cash flow, reduces disputes, and strengthens the construction supply chain

The Whole Story:

The British Columbia government has introduced long-awaited prompt payment legislation aimed at improving cash flow and fairness across the province’s $28-billion construction industry.

Bill 20, the Construction Prompt Payment Act, sets legally enforceable timelines for payment on construction projects. Under the new framework, project owners would be required to pay general contractors within 28 days of receiving a proper invoice, with an additional seven days for payments to flow to subcontractors. The legislation also establishes an adjudication system to resolve payment disputes more quickly.

“Construction workers, contractors and subcontractors build the infrastructure that communities rely on – schools, hospitals, roads, housing and more,” said Bowinn Ma, Minister of Infrastructure. “By making sure they are paid promptly and fairly, we are helping projects move forward smoothly and supporting good jobs for people throughout the province.”

The move aligns B.C. with other provinces — including Ontario, Alberta, Saskatchewan and Nova Scotia — that have already adopted similar laws. Industry associations have long pushed for such reform, calling payment delays one of the most persistent and costly challenges facing the construction sector.

The Electrical Contractors Association of British Columbia (ECABC) called the bill its members’ top policy priority, saying contractors often wait 60 to 120 days for payment while still covering payroll and supplier costs.

“Prompt payment legislation brings fairness and improved certainty for everyone involved in construction projects, from the owner to the trades,” said ECABC president Matt MacInnis. “This legislation provides valuable protection for skilled tradespeople, construction professionals and contractors – particularly the small businesses who can least afford to take on the added risk of not knowing when they will get paid.”

The British Columbia Construction Association (BCCA) described the legislation as a “critical first step” toward securing payment certainty for an industry that employs more than 260,000 people and generates $29 billion annually.

“It will help owners by reducing payment disputes that can stall or disrupt projects, keep work moving as planned and ensure our collective focus remains on building, not battling over payment,” said BCCA president Chris Atchison.

Atchison noted, however, that further action is needed — including modernization of the province’s lien framework — to ensure timely and reliable payments across the entire construction chain. “This is not the finish line — it’s the starting line,” he said.

The Mechanical Contractors Association of British Columbia (MCABC) also applauded the announcement, saying prompt payment will make it faster and more affordable to build housing and infrastructure across the province. “Prompt payment is a historic step forward for B.C.’s $28-billion construction economy — one that MCABC has championed for over a decade,” said MCABC CEO Kim Barbero.

Industry leaders emphasized that the new rules will bring greater stability and efficiency to the construction supply chain, where predictable cash flow allows companies to invest in workers, training and innovation. “When money moves on time, so do projects,” said MCABC chair Kyle Wisniewski.

Bill 20 follows years of consultation and advocacy by industry associations. The province engaged with a broad cross-section of stakeholders through 2024 and 2025 to design a made-in-B.C. approach that builds on models already in place elsewhere in Canada.

If passed, the legislation is expected to introduce a major shift in how money flows through construction projects — one that advocates say will reduce costs, prevent disputes and strengthen confidence in the sector at a time of record building activity across British Columbia.