The final invoice for your renovation is well over the number you were quoted, or the job is half done and the contractor wants more money. This guide covers what BC law requires a renovation contract to say, how deposits and change orders work, and what liens and holdbacks mean for you. It then walks the dispute path from a written demand to the Civil Resolution Tribunal (most claims up to $5,000) or Provincial Court small claims (up to $35,000). Every rule here is taken from the statute or the official body that runs it.
Contractors use these words loosely, and BC’s consumer contract law doesn’t define them. What the law does set out is what the contract has to contain. That includes an itemized purchase price, the other costs the supplier can reasonably work out (such as taxes), the nature of costs it can’t work out yet, the payment terms, and the total price [1]. In practice, three questions matter more than the label:
Is there a total price in writing? A contract covered by Part 4 of the Business Practices and Consumer Protection Act (BPCPA) must state one [1].
Does it say what can change the price? The contract must list any restrictions, limitations or conditions that apply to supplying the work [1]. A clause that lets the price rise for named reasons, such as hidden rot found behind drywall, belongs here.
Is it itemized? Line items make it far easier to show later which charges were never agreed.
Consumer Protection BC also warns that the lowest estimate may not be the best deal. It suggests comparing several quotes and asking contractors to explain why their prices differ [6].
What a written renovation contract must include
Most renovations are future performance contracts, meaning you don’t pay in full up front or don’t receive the work right away. Consumer Protection BC names home renovations as an example [4][5]. Contracts with a total price under $50 are excluded [2][4]. New contract rules took effect on August 1, 2026 [3]. Under section 18.2 of the BPCPA, the contract must include, among other things [1]:
the supplier’s name, and its business name if different;
the date the contract is made;
a detailed description of the work, including relevant technical specifications;
the start date and, if applicable, the completion date;
an itemized price, taxes, and the nature of any costs that can’t yet be set;
the payment terms and the total price, including any cost of credit;
any other restrictions or conditions on the work;
the contractor’s return, exchange, cancellation and refund policies.
The supplier must also give you this information before you sign, clearly and at no charge. It must offer you a chance to view the whole contract, and give you a copy promptly if you ask [1][3]. For a future performance contract, the contractor must give you a copy within 15 days after it is made [1].
Your cancellation rights. You may cancel if the contract leaves out required information, if it doesn’t match what was disclosed before you signed, or if the disclosure rules weren’t followed. For a future performance contract, the deadline is one year after you receive a copy [1]. You can also cancel if the work hasn’t been delivered within 30 days of the promised supply date, at any time before it is delivered [1]. After a valid cancellation, the supplier must refund all money it received within 15 days [1]. Consumer Protection BC has a cancellation form and advises sending it in a way that gives you proof of delivery [3].
Consumer Protection BC also lists contract terms that are void if included. These are terms that stop you from joining a class action, stop you from posting reviews, or impose a mandatory dispute resolution mechanism [3].
Deposits and door-to-door sales
If you sign at your home rather than at the contractor’s permanent place of business, the contract is a direct sales contract, and stricter rules apply [1]:
You can cancel for any reason within 10 days after you receive a copy of the contract [1][7].
The contractor must give you a copy when you sign. If it doesn’t, or if it demands a down payment above the prescribed amount, the contract is not binding on you [1].
The prescribed down payment limit is the lesser of $100 or 10% of the total price [2].
Some products can’t be sold door to door at all. These include furnaces, duct cleaning, air conditioners, water heaters, water treatment devices and window or energy audits [1].
For contracts signed at the contractor’s office, the regulation’s down payment cap doesn’t apply. Consumer Protection BC still advises keeping down payments to a minimum, warning that a contractor paid a large deposit for materials may never return to start the job [7].
Change orders: put every change in writing
Most bill disputes begin with a change agreed verbally on site, such as an upgraded tile, a moved wall or an extra outlet. Consumer Protection BC’s advice is to get things in writing if timelines or costs change, on either side [5]. A workable change order has:
a number and date, and a reference to the original contract;
what is being added, removed or substituted;
the price change (or the rate and cap, if it is time and materials) and any change to the completion date;
signatures or written confirmation (an email reply works) from both of you before the work is done.
Keep a running total. When you can show that every change you approved adds up to $X, it is much harder for a final bill to land at $X plus a surprise.
When the final bill is over the estimate
Don’t pay the disputed part yet, and don’t refuse everything. Pay the amount you agree is owing, minus any lien holdback (see below), and set out in writing which charges you dispute and why.
Line up the paper. Compare the original contract, every change order and the invoice line by line. Mark each charge that has no written approval.
Ask for an itemized breakdown. The contract had to include an itemized price [1], so asking for the same detail on the final bill is reasonable.
Check your timeline. If the contract was missing required information and you received your copy less than a year ago, you may have a cancellation right [1][3]. Consumer Protection BC notes that once work has started, the remedy is usually through the courts [5].
Try to settle. Consumer Protection BC says the first step is always to work with the business to reach a solution [5].
Builders liens and the 10% holdback
A contractor, subcontractor or supplier who isn’t paid can file a claim of lien against your property title under the Builders Lien Act. As the owner, you have a duty of your own:
Holdback. The person primarily liable on each contract must retain a holdback of 10% of the greater of the value of work and materials actually provided and the amount of any payment made [18]. For an improvement worth less than $100,000, you don’t have to open a separate holdback account [18].
Holdback period. It ends 55 days after a certificate of completion is issued. Without a certificate, it ends 55 days after the head contract is completed, abandoned or terminated [18].
45-day filing window. A claim of lien must be filed within 45 days of those same events (the certificate of completion, or completion, abandonment or termination) [18]. A lien not filed in time is extinguished [18].
Small claims barred. A claim of lien can’t be filed for less than $200 [18].
One year to sue. The lien claimant must start a court action to enforce the lien within one year of filing it [18].
Your exposure. The most that all lien holders claiming under the same contractor can recover is the greater of what you still owe that contractor and the required holdback [18]. Holding back the 10% protects you if the contractor doesn’t pay its trades.
The lien rules are technical. If a lien lands on your title, read the Act and consider getting legal advice.
Licences, home warranty, WorkSafeBC and permits
BC Housing licensing and home warranty (new homes). General contractors, developers and building envelope renovators who build new homes must hold a residential builder licence and renew it every year [20]. All new homes built by a licensed residential builder must carry home warranty insurance. It covers 2 years for materials and labour (some items have shorter limits), 5 years for the building envelope and 10 years for structure [19]. These rules come from the Homeowner Protection Act and apply to new homes[19][24]. A typical kitchen or bathroom renovation of an existing house is not covered by home warranty insurance, so your contract and the remedies in this guide are your main protection. You can check a builder in the Licensed Builder Registry [22], and check a specific new home in the New Homes Registry [23]. BC Housing can refuse a licence to a builder who has had certain orders or judgments under laws including the BPCPA and the Builders Lien Act [21].
WorkSafeBC clearance letter. If you hire a registered contractor who isn’t paying its WorkSafeBC premiums, you could be liable for premiums on the work they do for you. WorkSafeBC advises getting a clearance letter before and after the work [25][27]. You can search by the firm’s account number or legal or trade name [26]. A contractor who supplies only labour may count as your worker [27].
Permits. Construction and major renovations need permits so the work complies with the BC Building Code and local bylaws. Your local government tells you which ones apply [28]. Many local governments take applications through the Province’s Building Permit Hub [29]. Electrical and gas work needs a separate permit, from Technical Safety BC in most areas or from one of the local governments that issue their own [30][31]. Technical Safety BC’s Permit Lookup Tool shows whether a permit exists and is active [30]. Agree in the contract who pulls each permit, and ask for the permit numbers. See our permit fee estimator for typical fees.
Step-by-step dispute path
Document. Gather the contract, change orders, invoices, payment records, texts and emails, and dated photos of the work.
Raise it in writing. Send a short, factual letter (outline below) and allow a reasonable deadline.
Check contract rights. If the contract lacked required information, consider a cancellation notice using Consumer Protection BC’s form [3].
Report a breach of consumer law. Consumer Protection BC takes complaints that fall under the laws it enforces, but you may need to take certain steps with the business first [8].
Mediate if you can. In Provincial Court, either party can require mediation for claims between $10,000 and $35,000 under Small Claims Rule 7.3 [14].
File a claim before the deadline. The basic limitation period is 2 years from the day the claim is discovered [17]. Choose the forum by amount (next section).
CRT or small claims court?
Up to $5,000: Civil Resolution Tribunal. The CRT’s small claims limit is $5,000, not counting interest and expenses [12]. Most claims in that range must go to the CRT, not the Provincial Court [13][15]. The CRT has a “Construction and renovations” category in its Solution Explorer. A business on either side needs a contact person, who must be a partner, owner, sole proprietor or authorized employee [9]. The process starts with negotiating online, then facilitation by CRT staff, and then, if needed, a decision by a tribunal member that can be enforced like a court order [13]. Application fees are $75 online for claims of $3,000 or less and $125 online for claims of $3,001 or more (more by email or mail) [10]. See the CRT’s step-by-step guide to making a claim [11].
$5,001 to $35,000: Provincial Court small claims. You start a case by filing a Notice of Claim, and a defendant served in BC has 14 days to file a Reply [14]. In Vancouver (Robson Square) and Richmond, claims from $5,001 to $10,000 can go to a one-hour simplified trial before a justice of the peace adjudicator [14][15]. A judge can’t award more than $35,000 plus interest and expenses, so anything over that is abandoned unless you sue in BC Supreme Court [14]. The Province publishes how-to guides for each step [16].
Sample demand letter outline
This is a structure, not a legal form. Keep it factual and short.
Heading: your name and address, the date, the contractor’s legal name as it appears on the contract, and the job address.
The agreement: “On [date] we signed a contract for [scope] with a total price of $[amount]. Change orders [numbers] added $[amount].”
The problem: “Your invoice dated [date] totals $[amount]. The following items do not appear in the contract or any signed change order: [list].”
What you have paid and are holding back: amounts paid to date, plus the 10% lien holdback you are retaining under the Builders Lien Act.
What you want: a revised invoice, a credit, repair of listed deficiencies, or the documents you need (permit numbers, a WorkSafeBC clearance).
Deadline and next step: “Please respond by [date, e.g. 14 days]. If we can’t resolve this, I intend to file a claim with the [Civil Resolution Tribunal / Provincial Court].”
Delivery: send it by email and by registered mail, and keep copies.
Watch out for fakes and scams
Pressure to sign today. High-pressure sales tactics are one of the most common signs of a scam. Take the time you need [6][7].
No written contract. A contractor who wants to keep everything verbal is a red flag [7].
Large up-front cash. At your door, the down payment can’t legally exceed the lesser of $100 or 10% [2]. Anywhere, keep it minimal [7].
Door-to-door furnace, water heater or energy audit offers. These can’t be sold door to door [1].
“Licensed builder” claims. Check the BC Housing Licensed Builder Registry yourself [22].
“We’re covered by WorkSafeBC.” Get the clearance letter from WorkSafeBC directly [26].
“No permit needed.” Ask your local government, and check electrical or gas permits with Technical Safety BC’s lookup tool [28][30].
A complaint history. Consumer Protection BC suggests checking its site for complaints and enforcement actions against a business, and your local Better Business Bureau for reviews [7]. Note that fraud itself is usually a police matter [7].
Frequently asked questions
Can a contractor charge more than the quote in BC?
Only if your contract or a later written agreement allows it. A renovation contract covered by the Business Practices and Consumer Protection Act must state an itemized price, the total price and any conditions that apply. Charges with no written approval are the ones to dispute.
How much deposit can a contractor ask for in BC?
For a contract signed at your home (a direct sales contract), the down payment can’t be more than the lesser of $100 or 10% of the total price. That cap doesn’t apply to other contracts, but Consumer Protection BC advises keeping deposits to a minimum.
Can I cancel a renovation contract?
You have 10 days to cancel a contract signed at your door for any reason. You may also cancel within one year if the contract is missing required information or doesn’t match what was disclosed to you.
Where do I file a claim against a contractor in BC?
Claims up to $5,000 usually go to the Civil Resolution Tribunal. Claims from $5,001 to $35,000 go to Provincial Court small claims. Larger claims can go to BC Supreme Court.
How long do I have to sue a contractor?
The basic limitation period in BC is 2 years from the day the claim is discovered.
What is the 10% holdback?
Under the Builders Lien Act, an owner must retain 10% of the value of work done or payments made, until 55 days after completion. It limits your exposure if subcontractors file liens.
How long does a contractor have to file a lien?
45 days after a certificate of completion is issued, or 45 days after the contract or improvement is completed, abandoned or terminated.
Does home warranty insurance cover my renovation?
Generally no. BC’s 2-5-10 home warranty insurance applies to new homes built by licensed residential builders, not to renovations of an existing home.