VANCOUVER – After decades of consistent advocacy by industry leaders, B.C.’s new prompt payment legislation has officially received Royal Assent and is now law. Bill 20, officially named The Construction Prompt Payment Act, SBC 2025, c 24, aims to stabilize cash flows and reduce the financial burden of late payments across the province’s construction sector.
The legislation, first introduced in October 2025, marks a significant milestone for the industry, which contributes over $28.5 billion annually to the provincial economy.
New, Strict Payment Timelines
The core of the new law is the establishment of strict payment deadlines across the construction supply chain, bringing B.C. into alignment with other Canadian jurisdictions.
The British Columbia Construction Association (BCCA) has outlined the new mandates:
- Day 0: A proper invoice must be submitted to the owner.
- Day 28: The owner must pay (unless a notice of non-payment is given).
- Day 35: The contractor must pay subcontractors (within seven days of being paid).
- Day 42: Subcontractors must pay their subs, and so forth.
“This achievement reflects decades of consistent, principled advocacy and represents real progress toward a payment system that is fairer, more predictable, and more sustainable across the entire construction sector and the infrastructure and housing it delivers province wide,” said BCCA president Chris Atchison.
The Work Is Not Over
While celebrating the passage of the bill, both the BCCA and the Vancouver Regional Construction Association (VRCA) warned that the legislation’s success hinges on the next phase of development: the drafting of regulations.
“The effectiveness of the Construction Prompt Payment Act will depend on clear, practical regulations that reflect the realities of the industry,” Atchison said, pledging the BCCA will continue to work closely with the government to ensure this next phase advances promptly and with meaningful input from industry.
VRCA president Jeannine Martin stressed that the dispute resolution process must be efficient. “The adjudication process must be efficient, accessible and easy to navigate to deliver a healthier, more sustainable industry,” she added.
The construction industry is vital to B.C.’s economy, with the value of current construction projects standing at $158 billion province-wide, a massive figure that underscores the need for a stable and balanced payment system.
