The Money You Hold Back | Certificate of Completion
The Certificate of Completion
Both clocks need a starting gun. A certificate of completion is the only version of that starting gun with a date on it that nobody can argue about later.
What the certificate does
Section 7 of the Act deals with the certificate of completion. It is a certificate stating that the work under a contract or subcontract has been substantially completed, and a court order can have the equivalent effect.
Its function is to fix the date. Once issued, the 45-day filing window in section 20 and the 55-day holdback period in section 8 both run from the day of issue. Every downstream date becomes calculable.
Without one, both clocks run from completion, abandonment or termination of the head contract, or of the improvement itself. Those are real events, but they are events people disagree about after the fact.
Why an argument about the start date is expensive
Consider a build where the trades finished in stages, the owner moved in before the last deficiencies were closed out, and the final invoice was disputed. Ask three parties when the head contract was completed and you may get three answers weeks apart.
That disagreement matters in both directions. An owner who releases the holdback based on an early completion date may be paying inside a filing window that is still open. A claimant relying on a late date may find a court disagrees and treats the claim as out of time under section 22.
A certificate removes the argument by replacing an event with a document.
Getting one issued on a small build
On a large project a payment certifier is a defined role held by an architect or engineer administering the contract. On a small multiplex there may be nobody in that seat at all.
If your build has a designer or engineer administering the contract, raise the certificate with them before completion rather than after. If nobody holds that role, this is worth a conversation with a construction lawyer about how your contract defines completion, because that definition is doing the work the certificate would otherwise do.
Either way, write down the date and keep the document that establishes it. The final payment depends on it.
Best For
- ✓ Builds administered by an architect or engineer as payment certifier
- ✓ Projects where the final payment is large enough to be worth protecting
- ✓ Any contract where completion happened in stages
Usually Fails When
- ✕ Nobody on the project holds the payment certifier role
- ✕ Completion was gradual and no single date was recorded
- ✕ The owner occupied the building before the work was finished
What To Verify Before Spending Money
- → Who on your project can issue a certificate of completion
- → The exact date on the certificate, in writing
- → That your contract defines completion consistently with the certificate
Frequently asked questions
What is a certificate of completion under the BC Builders Lien Act?
A certificate of completion is a certificate stating that the work under a contract or subcontract has been substantially completed, dealt with in section 7 of the Builders Lien Act. A court order can have equivalent effect. Its practical function is to fix a known date from which the lien deadlines are counted.
Why does a certificate of completion matter for the holdback?
Because it starts both clocks on a date nobody can dispute. Once the certificate is issued, the 45-day filing window under section 20 and the 55-day holdback period under section 8 both run from the day of issue, so the final payment date becomes a calculation rather than an argument about when the work was really finished.
What happens if no certificate of completion is issued?
Both deadlines then run from completion, abandonment or termination of the head contract, or from completion or abandonment of the improvement where no head contractor was engaged. These are genuine events but they are open to disagreement afterwards, particularly on builds that finished in stages or where the owner moved in early.
Who issues the certificate of completion?
On projects with a contract administrator the certificate comes from the payment certifier, typically the architect or engineer administering the contract. On a small multiplex there may be nobody holding that role, which is worth resolving with a construction lawyer before completion rather than discovering it when the final payment falls due.
Is substantial completion the same as final completion?
No. A certificate of completion under section 7 states that the work is substantially completed, which is a different point in time from the moment every last deficiency is closed out. A building can be substantially complete while a punch list remains open, and it is the substantial completion date that drives the lien deadlines.
Can a court order act as a certificate of completion?
Yes. The definition in section 7 of the Builders Lien Act includes court orders that have equivalent effect to a certificate of completion. This matters where the parties cannot agree on whether or when the work was substantially completed and the question has to be resolved by the court instead of by the payment certifier.
Should I get a certificate of completion on a fourplex build?
It is worth pursuing wherever the final payment is large enough to matter, which on a fourplex it usually is. The certificate converts a contestable event into a dated document, and both the 45-day filing deadline and the 55-day holdback release are then straightforward to calculate and defend if questioned.
Does moving into the building count as completion?
Occupancy is not the statutory trigger. The clocks run from the certificate of completion under section 7, or failing that from completion, abandonment or termination of the head contract or the improvement. Owners who move in before the work is finished often assume occupancy started the clock, and that assumption can lead to releasing the holdback too early.
Official Sources Referenced
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