Table of Contents
Questions and Answers on the Builders Lien Act
Printed copies of Questions And Answers on the New Builders Lien Act are available for purchase by calling Government Publication Services at 1-800-663-6105 or (250) 387-6409. The cost is $13.80 plus shipping and handling. They may also be ordered online through Crown Publications’ electronic bookstore.
Sources referred to in this document |
Chapter 1 – An Introduction to the New Builders Lien Act |
1.1 Purpose of Act 1.2 History of Act 1.3 Why a new Act? 1.4 What the Act cannot do |
Chapter 2 – The Anatomy of a Construction Project |
2.1 The pyramid 2.2 The truncated pyramid 2.3 “Engaged by” and “engaged under” 2.4 The flow of money and credit 2.5 Smaller projects |
Chapter 3 – The Participants – a “Who’s Who” |
3.1 Participants 3.2 “Contractors” and “subcontractors” 3.3 “Head contractor” 3.4 Architects and engineers 3.5 Definition of owner 3.6 Construction lender 3.7 Material supplier 3.8 “Worker” |
Chapter 4 – The Lien |
Chapter 5 – The Holdback |
Chapter 6 – Holdbacks by the Owner |
Chapter 7 – Holdbacks and the Limited Recovery/Liability Principle |
7.1 Limited liability and recovery 7.2 Significance of “recovered under this Act” 7.3 “Amount owing” 7.4 Counterclaim 7.5 “Bad faith” 7.6 Payment after lien filed |
Chapter 8 – Filing Liens |
Chapter 9 – Clearing Liens From the Owner’s Title |
Chapter 10 – Certificates of Completion |
Chapter 11 – The Running of Time for the Filing of Liens and Release of Holdbacks |
Chapter 12 – Keeping Money Within the Construction Pyramid |
Chapter 13 – Enforcing the Lien |
13.1 Enforcement generally 13.2 Enforcement by action 13.3 Time limit for enforcement 13.4 Venue for proceedings 13.5 Powers of court 13.6 Evidence of filing and delivery |
Chapter 14 – Distributing Proceeds to Lien Claimants |
Chapter 15 – Holdbacks by Purchasers |
Chapter 16 – Deficiencies and Holdbacks |
16.1 Deficiencies generally 16.2 Use of “required holdback” 16.3 Additional money retained |
Chapter 17 – The Construction Lender and Builders Liens |
17.1 Position of construction lenders 17.2 Information from lender 17.3 Priorities 17.4 Effect of court order |
Chapter 18 – Application of the Builders Lien Act to Improvements on Unregistered Land |
18.1 Registered and unregistered land 18.2 Applicability of trust 18.3 Does the lien exist? 18.4 Holdback requirement |
Chapter 19 – Improvements on Mining Property |
19.1 Mining property 19.2 Filing against mineral title 19.3 Other provisions |
Chapter 20 – Public Bodies and the Builders Lien Act |
20.1 Governmental bodies 20.2 Local governments 20.3 Provincial government 20.4 “Crown” |
Chapter 21 – Rights to Information |
21.1 Rights to information |
Chapter 22 – Transition |
22.1 Transition generally 22.2 Owner’s holdback account not required 22.3 Other holdbacks 22.4 Purchaser’s holdback 22.5 Money in court 22.6 Application to court 22.7 Regulation making power |
Appendix A – Builders Lien Act, S.B.C. 1997, Chapter 45 |
Appendix B – Forms |
Form 1 Form 2 Form 3 Form 4 Form 5 Form 6 |
Appendix C – Relevant Portions of Miscellaneous Statutes |
List of Figures |
Figure 1 – The pyramid structure of a large construction project Figure 2 – A “truncated pyramid” structure with owner acting as manager Figure 3 – Relationships within the pyramid Figure 4 – The flow of money and credit Figure 5 – “Classes” of lien claimants Figure 6 – The multiple holdback scheme Figure 7 – Limited recovery/liability – section 34 Figure 8 – The obligation to clear liens Figure 9 – Calculating a payment into court Figure 10 – Payment into court under section 23 Figure 11 – Clearing additional liens under section 23 decision procedure Figure 12 – Persons affected by certificate Figure 13 – Early release of holdback Figure 14 – The running of time: section 20(3) Figure 15 – The operation of the statutory trust: section 10 Figure 16 – Garnishment: four cases Figure 17 – Crediting payments to the right project Figure 18 – Allocation of proceeds of sale Figure 19 – Allocation of proceeds of sale: an example Figure 20 – Distribution to members of the contractor group Figure 21 – The unfair result of a simple pro rata distribution Figure 22 – Distribution to members of subcontractor group Figure 23 – Distribution to members of subcontractor group: example Figure 24 – Residual operation of the statutory trust example Figure 25 – Applying section 10(3) |
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