The Money You Hold Back | The Two Clocks
45 Days and 55 Days
Two numbers, two sections, one starting event. Almost every costly mistake on a small BC build comes from treating them as a single deadline.
Section 20: forty-five days to file
Section 20 sets the time for filing a claim of lien. A claim must be filed no later than 45 days after the day the certificate of completion is issued.
Where no certificate of completion was issued, the window runs 45 days from the day the head contract is completed, abandoned or terminated. If there was no head contractor, it runs from the completion or abandonment of the improvement itself.
Section 22 is the consequence: a lien that is not filed as required by the Act is extinguished. Miss the window and the claim is gone, however genuine the underlying debt.
Section 8: fifty-five days before the money moves
Section 8 sets the holdback period. Where a certificate of completion was issued, the holdback period expires at the end of 55 days after that certificate.
Where section 8(1) does not apply, the period expires 55 days after the head contract is completed, abandoned or terminated, or 55 days after the improvement is completed or abandoned where there was no head contractor.
Section 8(4) then allows payment of the holdback after the period expires, and the liens of the person paid are discharged, unless in the meantime a claim of lien was filed or proceedings were commenced.
The ten days in between are the point
The two clocks start on the same event and finish ten days apart. That gap is the window in which an owner searches title, sees whether anything was filed at the last moment, and only then releases the money.
An owner who pays the holdback on day 45 has skipped that check. A claim filed on the morning of day 45 is validly filed, and it may not yet be visible when they look. The money leaves and the lien stays.
The correct sequence is simple. Wait out the 45 days. Search title. Release on day 55 if it is clear.
Best For
- ✓ Owners scheduling the final payment on a completed build
- ✓ Anyone reconciling a construction loan at project close
- ✓ Contractors chasing a holdback release from an owner
Usually Fails When
- ✕ The holdback is released on day 45 because the filing window closed
- ✕ No certificate of completion was issued, so nobody agrees when day zero was
- ✕ Title is never searched before the final payment goes out
What To Verify Before Spending Money
- → The exact date the certificate of completion was issued
- → A title search dated between day 46 and day 55
- → That the release is scheduled for day 55, not day 45
Frequently asked questions
What is the difference between the 45-day and 55-day builders lien deadlines?
The 45 days in section 20 of the Builders Lien Act is the deadline for an unpaid party to file a claim of lien. The 55 days in section 8 is the holdback period, after which the retained money may be paid out. Both run from the same event, and the ten-day gap exists so the owner can search title after the filing window closes.
When does the 45-day lien filing period start in BC?
Under section 20 of the Builders Lien Act the 45 days runs from the day the certificate of completion is issued. Where no certificate was issued, the window instead runs from the day the head contract is completed, abandoned or terminated, or from completion or abandonment of the improvement where there was no head contractor at all.
Can I release the holdback on day 45?
You should not. Section 8 sets the holdback period at 55 days, and a claim of lien filed on the morning of day 45 is validly filed under section 20 even though it may not yet appear on a title search. Releasing on day 45 means the money is gone while the lien remains registered against your property.
Why is the holdback period ten days longer than the filing window?
The ten-day gap is the owner's search window. Once the 45-day filing period under section 20 has closed, no new claim can attach for that contract, so the owner uses the following ten days to search title and confirm nothing was registered at the last moment. Only then does section 8 allow the holdback to be paid out.
What happens if a contractor files a lien after 45 days?
Section 22 of the Builders Lien Act extinguishes a lien that is not filed as required by the Act. A claim registered outside the 45-day window under section 20 is out of time, regardless of whether the underlying debt is genuine. The claimant would need to pursue the debt through ordinary contract remedies instead.
What starts the clocks if no certificate of completion was issued?
Both clocks 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. This is vaguer than a dated certificate, which is why a certificate of completion under section 7 is worth obtaining on any build where the final payment matters.
Does the holdback get released automatically at 55 days?
No. Section 8(4) permits payment after the holdback period expires, but it does not make the payment automatic. The owner should search title first, and the liens of the person paid are discharged only if no claim of lien was filed and no proceedings were commenced in the meantime.
Do the two clocks apply to a small fourplex build?
Yes. The Builders Lien Act applies to construction contracts in British Columbia without a small-project exemption for these deadlines, so a fourplex runs the same 45-day filing window under section 20 and the same 55-day holdback period under section 8 as any larger project would.
Official Sources Referenced
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