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