B.C. to introduce legislation regulating on-time construction payments

B.C. Attorney General Niki Sharma speaks to media prior to the First Minister’s Meeting in Saskatoon on Monday, June 2, 2025. THE CANADIAN PRESS/Liam Richards

VICTORIA — The British Columbia government is introducing new legislation aimed at making sure construction workers and contractors are paid on time.

Attorney General Niki Sharma says the bill is about fairness, and setting clear rules for payment, while providing an efficient way to resolve payment-related disputes that would support workers, small businesses and economic growth.

A statement from Sharma’s ministry says the law would boost cash flow and stability for the B.C.’s construction sector.

It says the province worked with the sector to ensure the changes reflect its needs, and several industry groups have welcomed the proposed law, including the BC Construction Association and Electrical Contractors Association of BC.

Others, however, have expressed some concern, with the Independent Contractors and Businesses Association issuing a statement asking for clarification over whether government bodies would have to comply to the new rules.

The group says it believes the bill allows for some differences in payment rules based on “public or private ownership,” and it wants a commitment that government agencies, corporations and others would also have to follow the new rules.

“Prompt payment has to mean prompt payment for everyone — including the province and municipalities,” says association president Chris Gardner in the statement.

“If government exempts itself or delays its own compliance, the law’s credibility will be undermined on Day 1.”

Other groups are more positive in their responses, with the Mechanical Contractors Association of BC saying the changes target one of the biggest inefficiencies in the construction sector, as delayed payments can drive up costs and slow down the completion of projects.

It says in a statement that major projects underway in B.C. are valued at about $158 billion, with another set of projects at $173 billion “on the horizon,” and the new law would help keep those projects, including housing, on schedule and on budget.

A statement from Chris Atchison, president of the BC Construction Association, says the legislation is a “long-overdue and critical first step” toward securing payment certainty to keep projects moving forward.

“Establishing fairness in how money flows means the industry can focus on building, not battling over payment,” Atchison says.

The work is not yet finished, the association adds, saying the law must be supported by clear regulations and the establishment of an adjudication authority.

In a statement, Sharma says getting paid on time shouldn’t be a struggle.

“When contractors and workers are paid fairly and on time, projects stay on track and on budget, small businesses are stronger and jobs are more secure.”

This report by The Canadian Press was first published Oct. 7, 2025.