Builders Liens After the Shimco Case

This project examined the decisions of the British Columbia Supreme Court and British Columbia Court of Appeal in Shimco Metal Erectors Ltd. v. Design Steel Constructors Ltd., and the court’s interpretation of provisions of the Builders Lien Act. The Shimco case established a controversial remedy under the Builders Lien Act, which provides an independent lien against the holdbacks that property owners, contractors, and subcontractors are required to maintain. A “holdback” is the percentage of a contract price retained by a contractor or lender until the project is completed and all bills for that project are paid. A “lien” is a claim on the property of another to satisfy an unpaid debt that can prevent it from being sold unless the lien is paid off.

Keywords: builders liens, Builders Lien Act, holdback, lien against the holdback, payment out of the holdback, business & non-profits, housing, tenancy & neighbours, buying or selling a home, condominiums, Shimco case, construction law, Strata Property Act