Hiring a Contractor in BC: Quotes, Contracts, Permits and the Lien Holdback

A renovation goes more smoothly when the paperwork is right before work starts. This guide is for BC homeowners hiring a contractor: how to compare quotes, check licences, insurance and WorkSafeBC status, what the contract should cover, how the 10% holdback under the Builders Lien Act works, when you need permits, and which warning signs to watch for.

The short version

Getting and comparing quotes

Start with a written description of the job, so every contractor prices the same work. Consumer Protection BC suggests getting written estimates from other companies, and BC Housing's guide to hiring a builder warns that one-page quotes don't give you enough information. Compare:

• What's included. Labour, materials, permits, disposal and clean-up, and whether GST is extra.
• Allowances and contingencies. An allowance is a budget for items not chosen yet, such as tile. BC Housing says an estimate should include an amount for contingencies.
• Timing and pricing. The start date and length of the job, and whether it's a fixed price or cost plus a fee, with costs defined.

Checking the contractor before you sign

• Business licence. Ask for the company's legal name and licence; Coquitlam's bylaw, for example, requires anyone carrying on a business or trade in the city to hold one. The name should match on the quote, contract and insurance.
• Liability insurance. Ask about commercial general liability insurance, which covers third-party claims during construction, and its limit.
• WorkSafeBC clearance letter. It confirms a business is registered and paying its premiums. If a contractor you hire isn't, WorkSafeBC says you could be held responsible for premiums for your job, so get a letter before and after the work. If you hire individual workers yourself, a one-time project of 24 or more hours in total generally needs your own coverage. With two or more firms on site at once, name a prime contractor in the contract to coordinate safety, or WorkSafeBC treats you, the owner, as one.
• Electrical and gas work. Technical Safety BC says that by law only qualified people employed by licensed contractors can do this work, and the contractor gets the permit; its website has a contractor search. Vancouver, Burnaby and Surrey issue electrical permits themselves.
• New homes. A builder you hire for a new home, including a substantially reconstructed one, must be licensed by BC Housing, and the home registered for home warranty insurance; BC Housing's public registry shows licence status.
• References and reviews. Call recent clients about how changes and problems were handled, read reviews, and see finished work.

What the written contract should cover

Under BC's consumer protection law, a contract over $50 for work done in the future must include the business's legal name, the date, a detailed description of the work, an itemized and total price, the payment terms, and its cancellation and refund policies, and the business must give you a copy within 15 days. Beyond those basics, make sure it covers:

• Scope and changes. The work, materials and finishes, with drawings, and change orders in writing, agreed to by both sides.
• Schedule. Start and completion dates, milestones, and how delays are handled.
• Payments. Tied to progress, with the holdback shown.
• Warranty and deficiencies. What is warranted, for how long, and how deficiencies get fixed. BC's mandatory home warranty insurance is for new homes, so get any renovation warranty in writing.
• Permits and clean-up. Who gets each permit, how your property is protected, and who removes debris.
• Ending it and disputes. When either side can terminate, and how disputes are handled. Claims of $5,000 or less generally go to the Civil Resolution Tribunal; Small Claims Court hears claims up to $35,000.

The 10% holdback and builders liens

A builders lien is a claim against your property by a contractor, subcontractor, supplier or worker who improved it and wasn't paid. It is filed in the Land Title Office and shows on your title, even if you paid your contractor in full.

The Builders Lien Act protects you through the holdback. The person primarily liable on the contract, usually the owner, must keep back 10% of the value of the work as it is done. The holdback period ends 55 days after a certificate of completion is issued or, without one, after the contract is completed, abandoned or terminated. Completed means substantially done: for a job under $500,000, when what's left would cost no more than 3% of the price to finish or fix. Claims of lien must be filed within 45 days of the same events.

For example, on a $60,000 job, when the work is 25% done and worth $15,000, you pay $13,500 and keep $1,500. At completion you have paid $54,000 and kept $6,000. If no lien is filed in the 55 days, paying the holdback discharges the liens of the contractor and those it hired. Check title first; see Reading a Title Search in BC.

For work worth $100,000 or more, the Act also requires a separate holdback account. If you pay in full without a holdback, lien claimants can still recover up to the amount you should have kept. BC's Construction Prompt Payment Act, which received Royal Assent in November 2025 but isn't in force yet, will shorten the holdback period to 46 days once it takes effect, so ask a lawyer which rules apply.

Permits, inspections and strata approval

Your city decides what needs a permit. In Vancouver, for example, renovations that move interior walls or existing plumbing, electrical or gas lines need one, as do structural repairs, adding a secondary suite, and building or altering a garage, shed or deck. Replacing fixtures, cabinets or flooring, and painting, don't.

Usually the contractor applies for permits, and Technical Safety BC notes that the permit holder is responsible for complying with the permit's terms. Book the required inspections and keep the permits and final inspection records. Unpermitted work can come back to you when you sell; see Selling a Home with Unpermitted Work in BC.

In a strata, the Standard Bylaws require the strata's written approval before you alter the building's structure or exterior, exterior doors and windows, or common property, and your strata's own bylaws may add more. See Renovating a Condo: Strata Approvals and What to Ask First.

Red flags, including door-to-door offers

• Pressure to sign today. As Consumer Protection BC puts it, if the deal is great today, it will still be great tomorrow.
• Cash only, or a large deposit. It also calls an unreasonably large deposit or a request for payment in cash a possible warning sign, so keep deposits modest and pay in a way that leaves a record.
• No paperwork. BC Housing's warning signs include a builder who won't provide references or documents such as a sample contract, won't discuss holdbacks, or gives a price that seems too good to be true.
• A permit in your name. Ask why if a contractor wants you to take out the permit: Technical Safety BC homeowner permits are for doing the work yourself, in a single detached house you solely own and live in, with no suite.
• Door-to-door sales. BC bans door-to-door sales of furnaces, heat pumps, air conditioners, water heaters, home security systems, solar panels and a few other home products and services, unless you invited the business or another exception applies. For other contracts signed at your door, you can cancel for any reason within 10 days after you get a copy, and the deposit shouldn't be more than $100 or 10% of the price, whichever is less.

Questions homeowners often ask me

How many quotes should I get for a renovation?

There's no set number. Get enough detailed quotes to compare, each pricing the same written scope, so you can check allowances, permits and clean-up line by line.

Do I have to keep the 10% holdback if my contract doesn't mention it?

Yes. The holdback is a duty under the Builders Lien Act, not a contract term, and it applies whether you pay in stages or at the end. Showing it on every payment in the schedule avoids arguments later about what is owed.

Can a subcontractor put a lien on my home if I paid my contractor?

Yes. An unpaid subcontractor, supplier or worker can file a claim of lien against your title within 45 days of completion. If you kept the holdback, your exposure is generally limited to that amount, so wait out the 55 days and check title before paying it.

What happens if someone files a lien on my title?

The person who filed it must start a court action within one year, and you can shorten that to 21 days by serving a notice. You can also clear it from title by paying money into court or giving security. A lawyer can tell you which step fits.

Can I cancel a contract I signed with a door-to-door salesperson?

For most contracts signed at your door, you can cancel in writing for any reason within 10 days after you receive a copy. If an uninvited seller sold you a banned product, such as a furnace or heat pump, the contract isn't binding on you.

Planning a bigger project? See how purchase plus improvements financing works, what to check when buying an older home, and how 2-5-10 new home warranty coverage works if you build new.

This article is general information, not legal advice. The details come from BC's Builders Lien Act, Consumer Protection BC, WorkSafeBC, Technical Safety BC, BC Housing, the Province of BC and the cities of Vancouver and Coquitlam, and were current at the time of writing; the holdback period will change once the Construction Prompt Payment Act takes effect. For the rules themselves, see BC's Builders Lien Act.