BC Introduces Prompt Payment Legislation

October 9, 2025

The government of BC has introduced new prompt payment legislation that will ensure contractors, subcontractors and workers are paid fairly and on time.

Once passed, the legislation will come into force after a transition period. This will allow time to establish an adjudication authority and to support industry through outreach and education, so businesses of all sizes understand their rights and responsibilities under the new system.

Prompt-payment rules will apply broadly to both private- and public-sector projects in B.C., including government contracts, unless specific exemptions are set out by regulation.

“Electrical contractors are the hidden engine of our communities and economy, powering homes, schools, hospitals, industrial sites and workplaces,” commented Matt MacInnis, president, Electrical Contractors Association of British Columbia. “Yet too often, they’re forced to wait months for payment while still covering payroll and supplier costs. Prompt-payment legislation brings fairness and certainty to everyone in the construction chain and will help improve consistency across projects. This bill is about protecting workers and contractors, keeping projects moving and ensuring B.C.’s construction industry remains strong.”

Chronic delays in payments have created financial hardship for many construction businesses, especially small and medium-sized contractors, and put stress on workers and their families.

The new prompt-payment legislation will:

• set clear timelines for payment on construction projects;
• establish a fast-track adjudication process to resolve payment-related disputes; and
• improve cash flow and stability across the construction industry.

The proposed system is based on models used in other Canadian jurisdictions, including Ontario and Alberta, where prompt-payment laws have delivered real benefits for businesses and workers. The new adjudication process will allow disputes to be resolved quickly by an independent adjudicator, providing an alternative to lengthy and costly court proceedings.

“We welcome this critical step toward payment certainty for B.C.’s construction industry,” said Chris Atchison, president, British Columbia Construction Association (BCCA). “It marks a new starting line that requires sustained collaboration between industry and government. Establishing fairness in how money flows means the industry can focus on building, not battling over payment. BCCA remains committed to continuing to work with the provincial government on this important issue.”

Prompt Payment in the Construction Industry – Province of British Columbia

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