Prompt payment legislation

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• Promoting fair and timely payment in the construction sector
• How it works
• Engagement

Promoting fair and timely payment in the construction sector

The new Construction Prompt Payment Act will ensure contractors and subcontractors will be paid on time for future construction projects. The new legislation sets clear payment timelines and provides a fast-track dispute resolution process to improve cash flow across projects and keep them moving.

Responsibility for the legislation now sits with the Ministry of Infrastructure, after being developed under the oversight of the Ministry of Attorney General.

How it works:

Proper Invoice: Contractors must deliver what’s called a “proper invoice” to the owner, on the timeline agreed to between the contractor and the owner. The proper invoice must include the information required by the legislation and the contract. The invoice will be considered proper unless the owner notifies the contractor of issues within seven days.

Payment Deadlines: If the owner pays in full, they must pay the contractor within 28 days of the date the proper invoice is given to the owner, and the contractor must then pay subcontractors and sub-subcontractors within 7 days of receiving that payment. If the owner pays only partially or not at all, they must notify the contractor within 14 days. If the contractor will not pay sub-contractors as a result of the owner’s non or partial payment, they must inform lower-tier parties and refer the dispute to adjudication.

Adjudication Process: The Act provides a process for payment-related disputes to be determined by an adjudicator, who will come from a registry of qualified professionals. The parties can choose an adjudicator, or if they cannot agree, one will be assigned by the adjudication authority. Adjudicators’ determinations are issued within weeks, and failure to comply with a determination can result in interest charges or suspension of work. This process offers a fast, independent alternative to lengthy court disputes (although parties still retain their rights to have the dispute litigated or addressed through arbitration).

What is the rest of Canada doing: Other Canadian jurisdictions such as Alberta, Ontario, Quebec and the federal government are have similar legislation. B.C. is now following established best practices used across Canada.

Implementation: The Act received Royal Assent on November 27, 2025, but is not yet in force.  The Province understands that industry needs some time to prepare for the new requirements, and there is also work to be done to develop regulations under the Act and to select an adjudication authority.  The Act will come into force at a future date once all this work has been completed.  

Engagement:

The Province has worked closely with key partners across the construction sector to help inform work for the development of this Act, including the BC Construction Association, and a broad range of other industry participants. We have heard a range of perspectives that have helped shape our approach, and we acknowledge each of them and appreciate the input received to date. Their expertise and ongoing collaboration from participants have been critical in grounding this approach in real-world construction experience.

The Ministry of Infrastructure has developed a Discussion Paper (PDF, 1.53MB) that outlines key policy questions for input from industry and interested stakeholders. Over the spring and summer, the ministry will continue engaging with partners through a broader consultation process to inform future policies and regulations, ensuring their input remains central as this work advances.