Does the Builders Lien Act require housing providers to hold back 10% of development invoices?
Yes, the Builders Lien Act requires you to hold back 10% of each invoice, for 55 days, from the date substantial completion is declared. You are also required to establish a holdback account for each contract valued at $100,000 or more.

Failure to hold back funds may have negative legal and financial implications. For example, a supplier or subcontractor can place a lien on a development if the contractor fails to pay them, until payment is received. If you hold back 10%, you will limit your liability as owner.

Does the Builders Lien Act require housing providers to ask contractors for a Statutory Declaration, confirming they have paid all suppliers, subcontractors, and employees?
The Act gives you the right to ask contractors for a Statutory Declaration confirming they have paid their bills. BC Housing requires contractors to submit a Statutory Declaration Form 9A for second and subsequent payment draws and when requesting release of the lien holdback.

The lien holdback must be paid 55 days after the contractor declares substantial performance, provided no liens have been filed. Conduct a lien search before making the payment. The contractor is confirming bills have been paid when the Statutory Declaration is signed, which will limit your liability for unpaid contractor accounts. See page 13 in chapter three of the Maintenance Guide for more information on lien searches.

What documentation should housing providers obtain from contractors before proceeding with a new development?
After the tender has closed and you have determined the lowest qualified bidder, use a Notice of Award letter to confirm your acceptance of the contractor or supplier’s bid, subject to receiving some or all of the following documents, within 10 business days:

Proof of WorkSafeBC Registration (Clearance Letter in Good Standing)
Proof of current Comprehensive General Liability insurance for not less than $2,000,000, showing the society/co-operative as the Additional Insured
Proof of Professional Liability Insurance Errors & Omissions (if applicable)
Proof of Third Party Legal Liability Insurance covering the duration of the project (Insurance Corporation of BC form APV47)
Names of subcontractors and a description of the work they will perform, or confirmation that no subcontractors will be involved in the project
Scope of Work and timeline (or Gantt Chart) or Clear Specifications of the Product (This information is only required on construction projects where the work may take an extended period.)
At least two copies of the contract document for the contractor to sign
Performance Bond and Labour and Material Bond (if applicable)
Business Number (BN) for GST registration

Have your contract administrator select the appropriate documents from this list to include in your Notice of Award letter. If the contractor/supplier will be entering your work site, ensure the Workers’ Compensation Board and liability insurance are kept current during the whole term of the contract.

How can we find reliable, competitive small contractors such as plumbers or roofers?

Your Non-Property Portfolio Manager may be able to refer you to local suppliers and contractors. The BC Non-Profit Housing Association has prepared a Supplier Directory by geographic area, and can be reached at 604-291-2600 or 1-800-494-8859, or by email at admin@bcnpha.bc.ca .

Provincial associations such as the Roofing Contractors Association of BC, at www.rcabc.org or 604-882-9734, the BC Floor Covering Association, at www.bcfca.com or 604-689-9928, and the Master Painters and Decorators Association, at www.paintinfo.com, can provide names of member trades people.

You can also visit the Better Business Bureau at www.bbbvan.org and select Company Reports, which lists member service providers and their service record. The Greater Vancouver Home Builders Association website, at www.vancouverhomebuilders.org , also lists member contractors in the Members section.

The Co-operative Housing Federation of BC has building envelope consultants who can assess damage and advise co-operatives on the steps to take to remedy building envelope problems.