Can a Contractor Lien a Property Without a Written Contract?

When a contractor performs work on a property in British Columbia, under the Builders Lien Act, they or a subcontractor may file a claim of lien in certain cases even without a formal written contract. At Linley Welwood, we assist businesses and property owners navigating construction law issues, including liens. That is why we have put together some information outlining whether or not a contractor can lien a property without a written contract.

Get answers to some of the most common questions about builders liens.

How Does the Builders Lien Act Apply When No Written Contract Exists?

Understanding the statutory regime under the Builders Lien Act helps clarify whether a contractor has a lien right when there is no written contract in place. The Act focuses on work or materials supplied for an improvement to land and identifies who may claim a lien and when.

Who May Claim a Lien Under the Act

Section 2 of the Act defines persons entitled to claim a builders lien as a contractor, subcontractor, or person who supplies materials in respect of an improvement. Section 3(2) states that one of the conditions is that the claimant performed work or supplied materials “under, or in relation to, a contract or subcontract”. The absence of a written contract may not automatically prevent a lien right if there has been an engagement or other contract-like relationship.

Impact of Not Having a Formal Written Contract

A written contract is helpful because it clearly shows what each party agreed to, but the law does not require agreements to be in writing. What really matters is whether a contract existed at all, written or verbal, and whether the owner or main contractor hired the claimant to do the work. While keeping good contract records is useful, it is not legally mandatory.

Practical Considerations and Risk Management

From a practical perspective, lacking a written contract increases risk for both contractors and property owners. Contractors should ensure clear records of scope, authorization, and payments. Owners should confirm who has been engaged and consider formalizing contracts. Risk-management sources highlight that written contracts reduce disputes and clarify lien rights under British Columbia legislation. Seeking early guidance from a construction lawyer can further help parties understand their obligations and avoid misunderstandings that could lead to lien-related conflicts.

At Linley Welwood, we assist clients with construction law and lien-related matters in British Columbia. If you are a contractor seeking to understand your rights or an owner concerned about lien exposure when work has been done without a formal written agreement, contact us to discuss how we can support your next steps.