Free PDF guide

Construction contracts in BC: how a build is priced, paid for and changed

Cost plus fees, standard forms, payments and holdbacks, changes and allowances, insurance and safety, and disputes, for homeowners in BC.

50 pages, 7 parts, 27 sources. Written by Mark Van Ek. Figures re-verified 2026-10-24.

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Construction contracts in BC: how a build is priced, paid for and changed

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What is inside

  1. Overview

    Construction contracts in BC: how a build is priced, paid for and changed.

  2. Part 1

    What a cost plus contract is, and how the builder's fee is set

    Percentage and fixed fees, guaranteed maximum price, the cost of the work, and open book records.

  3. Part 2

    Standard construction contracts: the CCDC forms and what any contract must cover

    The CCDC forms by price basis, and the clauses to check in any contract.

  4. Part 3

    Deposits, progress payments and the holdback: how money moves under BC's Builders Lien Act

    Deposits, progress payments, the 10% holdback, completion, lien deadlines and warranty.

  5. Part 4

    Change orders, allowances and delays: how a contract handles the parts that move

    Change orders, allowances, provisional amounts, contingency and delay, in writing.

  6. Part 5

    Insurance and site safety: builder's risk, liability cover and WorkSafeBC duties for homeowners

    Builder's risk, liability insurance, your home policy, prime contractor duties and clearance letters.

  7. Part 6

    Disputes and ending a contract: mediation, arbitration, tribunal, court and liens in BC

    Mediation, arbitration, tribunal and court limits, liens in a dispute, and termination.

Key points from the guide

  • Choosing fixed price or cost plus decides who carries cost overruns. The terms written after that choice decide how much protection the owner gets.
  • A cost plus contract pays actual cost plus a percentage or fixed fee (CCDC 3 2016), and section 41 of the Builders Lien Act lets an owner request subcontract prices at any time.
  • The owner must hold back 10% of the greater of work value and payments made (Builders Lien Act section 4), in a joint holdback account on contracts of $100,000 or more (as of 24 October 2026).
  • A lien must be filed within 45 days after completion, abandonment or termination, and the holdback period ends 55 days after the same date.
  • A renovation price is fixed only for the written scope. Owner changes, allowance overruns and excluded conditions are added by change order.
  • The owner is the prime contractor for WorkSafeBC unless a written agreement names someone else (Workers Compensation Act section 13).
  • The Civil Resolution Tribunal hears most small claims up to $5,000 and Provincial Court small claims goes to $35,000 (as of 24 October 2026); builders liens are enforced in the Supreme Court.
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