On May 26, 2026, the Province of British Columbia announced that it was initiating a six-week consultation process on the implementation of the new Construction Prompt Payment Act (the Act) between May 26, 2026 and July 7, 2026.
As we have previously written, the Act will significantly reform payment practices and how disputes are resolved on construction projects in BC. Among other things, the Act will include:
- a prompt payment regime which will require that payments on construction projects be made within strictly defined periods of time by owners, contractors and subcontractors; and
- an adjudication regime which will provide for an expedited fast-track process to resolve disputes on construction projects in a matter of weeks.
Both regimes will be mandatory, and parties to construction projects in BC will not be able to contract out of them.
The Act was enacted on November 27, 2025. However, it states that it will not come into force until regulations have been passed to implement it. Moreover, the BC government originally indicated that the legislation might only come into force after a transition period or in phases, and that certain projects or sectors of the industry might be exempted.
On May 26, 2026, the BC government issued a Discussion Paper in which it seeks the input and feedback from industry participants on, among other topics, how and when the Act will come into force. In it, the BC government acknowledges that although Act allows for certain projects and sectors to be exempted and for a phased implementation, "given the time that has elapsed since the legislation was enacted and the time that remains for all industry participants to prepare for the Act's application, the government's proposed approach will be to apply the legislation to all projects".
Nevertheless, the BC government asks industry stakeholders to provide their feedback on the implementation of the Act, including but not limited to:
- whether the Act should broadly apply across the construction industry, or whether it should have a more limited application;
- whether exemptions should be provided to the Act, and if so, why; and
- whether the Act should come into force all at once, or whether a phased approach should be applied.
This provides an important opportunity for industry participants—including owners, contractors and subcontractors—to be heard on the above topics, among other aspects of the Act. All such feedback is to be provided by no later than July 7, 2026.
Given our wealth of experience and expertise on project development, infrastructure and construction, our Infrastructure team at Bennett Jones is uniquely well-positioned to assist industry stakeholders in communicating their feedback and concerns to the BC government on the implementation of the Act. Please reach out to any of the authors of this post or to other members on our Infrastructure team, and we would be pleased to assist.
