Further to our previous insight in October 2025, the new Construction Prompt Payment Act was passed in the BC Legislature on November 27, 2025, and regulations are underway to bring it into force. The purpose of this Act is to create mandatory payment deadlines for payments through the construction chain, along with the creation of a new adjudication body and process for efficient resolution of payment-related disputes in the construction industry. The government has recognized that the industry will need time to prepare before the Act takes effect.
To better understand the needs of the industry and hopefully aid in this transition, the government has released a discussion paper seeking consultation and feedback from industry professionals by July 7, 2026. The government is inviting discussion from industry professionals on several key components of the Act, namely:
- Application and coming into force
As mentioned in the last bulletin, the Act only applies to contracts made after the legislation comes into force. It will apply to both private and public sector contracts relating to construction improvements, unless the Provincial government enacts regulations to create exemptions. The Act allows for phased implementation in which the legislation applies to some sectors right away and adds others later. However, given the time lapse between enactment and coming into force, the government’s current proposed approach is set to apply to all construction projects from the outset. Prior consultation with industry professionals made clear to the government that the Act will be most effective if it has a broad application, because exemptions of certain sectors or groups could confuse parties in the construction chain.
The government is seeking input with respect to the timing and scope of application of the Act, along with any specific instances that would make it impossible to meet the requirements of the Act and require an exemption.
- When a record is given or issued, or a payment is made
The Act defines the invoice date as the date the contractor gives the invoice to the owner. More guidance may be needed to determine what it means to “give” the invoice because other payment deadlines depend on this date.
The government is seeking guidance to further clarify when an invoice has been “given” or “delivered to an owner, and when a payment has been “made.” The intent is to find a balance in providing certainty regarding these key milestones and reduce disputes, without imposing burdensome or impractical requirements on parties (i.e. requiring invoices to be delivered by registered mail).
- Calculation of days
The Act allows, but does not require, a regulation to be made regarding the calculation of days. The Ministry has proposed keeping the calculation the same as existing government rules and consistent with the Builders Lien Act.
The government is seeking input as to the approach for calculating days under the Act, and whether any alternative approaches should be considered.
- Interest rates on late payments
Under the Act, interest is charged on late payments at whichever rate is higher between: the rate set out in regulations or set out in the contract (if any). The Act sets out two situations in which a payment is considered late:
- Payment is delivered later than 28 days after the proper invoice is given, pursuant to Part 3 of the Act; or
- Payment is delivered later than within 15 days after determination by an adjudicator.
The government has proposed the interest rate for late payments to follow the British Columbia pre-judgement interest rates set by the Supreme Court Registrar. These interest rates are updated every six months. The government is seeking input as to any potential impacts or challenges with setting the interest rate based on the Supreme Court Registrar’s guidelines, and input as to other modes of establishing the interest rate.
- Adjudicators qualifications and fees
Qualifications
Under the Act, a person must meet certain minimum requirements to be considered a qualified adjudicator. Other provinces have required a minimum of 10 years of experience in the construction industry as well as completion of specific training. Following this model would ensure British Columbia adjudicators have experience in the construction industry, improve consistency in decision-making, and strengthen confidence in the qualifications and professionalism of adjudicators.
The government is seeking input as to the minimum qualifications that adjudicators should be required to have to decide disputes under the Act.
Fees
The adjudication authority has the power to determine the fees payable to administer the process, including administrative fees and fees paid to adjudicators. This authority is subject to regulations, which may include setting maximum fees that may be charged. Depending on the value of the dispute, there may be fee caps.
The government is seeking input regarding the factors that should be considered in establishing appropriate fee amounts, while ensuring adjudication remains accessible.
- Industry readiness and support
The Act allows the government to establish standardized forms for industry use, including forms for: proper invoice, notice of non-payment, notice of adjudication, and a response to a notice of adjudication. Ontario has forms for notices of non-payment and adjudication, and it is anticipated that the industry in British Columbia would like to see similar forms here.
The government is seeking input and industry support to determine which standardized forms should be developed under the Act at the outset, including what information should be considered part of a “proper invoice.”
Feedback is being accepted through written submissions to Engage.INF@gov.bc.ca until July 7, 2026.
We will continue to monitor this and update this bulletin as more information becomes available. If you have any questions regarding the Construction Prompt Payment Act or construction law more generally, please reach out to Michael B. Morgan or Rachel Wollenberg.