Running a trade business in British Columbia: licences, the 45-day lien and the missing prompt payment law

British Columbia regulates the dangerous trades tightly, licenses new-home builders through a warranty system, and then leaves general contracting surprisingly open. Payment protection, meanwhile, still runs on the old lien model. Here is the 2026 picture.

Licensing: tight where it is dangerous

Electrical and gas contractors are licensed by Technical Safety BC and must name a certified Field Safety Representative; individual electricians and gasfitters carry their own certification. Builders constructing new homes need a licence from BC Housing and mandatory 2-5-10 warranty insurance (two years on labour and materials, five on the envelope, ten on structure). General renovation contractors need no provincial licence, only municipal business licences, which makes your reputation and paperwork the real differentiator in the reno market.

Builders liens: 45 days and a 10% holdback

BC lien rights are short: a claim of lien must generally be filed within 45 days of the certificate of completion, completion or abandonment of the project. Owners retain a 10% holdback, on larger projects in a dedicated holdback account, and that fund is what liens primarily attach to. There is no prompt payment or adjudication regime in force yet; BC has studied one, so confirm the current status, but until it lands your contract terms and lien discipline carry the load.

WorkSafeBC and taxes

Employers must register with WorkSafeBC and pay premiums; sole proprietors can buy optional Personal Optional Protection, and many GCs require it before site access. BC layers 7% PST on top of 5% GST: contractors are generally the consumers of materials for PST purposes, paying tax on what they install rather than charging PST on labour, but classification traps exist for supply-only sales, so code invoices carefully.

The practical read

Chase the certificate of completion date on every project you supply, calendar the 45 days, and keep Technical Safety BC and BC Housing records current if you touch regulated work. In a province without prompt payment law, the contractors who get paid are the ones whose paperwork makes the holdback reachable.

FAQs for British Columbia trade businesses

Do renovators need a provincial licence in BC?

No. Residential builders constructing new homes need a BC Housing licence and warranty coverage, and electrical or gas contractors need Technical Safety BC licences, but general renovation contracting itself only needs municipal business licences.

Does BC have prompt payment legislation like Ontario and Alberta?

Not in force as of mid 2026. BC has signalled interest, but until legislation lands your payment protection is the Builders Lien Act, the 10% holdback and your contract terms, so confirm the current status before relying on it.

How long do I have to file a builders lien?

Generally 45 days from the certificate of completion, project completion or abandonment. It is one of the shorter windows in Canada, and the 10% holdback the owner retains is what your lien mostly attaches to.

This guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.