Lien Out: Arbitrary Protection For Pre-Construction Consultants

Those who claim a builders lien must comply strictly with the requirements of the Builders Lien Act, and owners (or at least their counsel) are frequently on the lookout for liens that can be extinguished for a failure to satisfy such requirements. The recent BC Supreme Court decision in Stanley Paulus Architect Inc. v. Windmill Holdings Ltd., 2014 BCSC 1816 serves as a reminder of one fundamental requirement: in order to claim a lien there must be an "improvement" within the meaning of the Act.  More particularly, there is no "improvement" where construction has not yet commenced even though considerable pre-construction work may have been undertaken.

In Stanley Paulus, an architectural consulting firm sought a declaration of builders lien in respect of amounts unpaid under its contract with the owner.  The consultant was retained to prepare plans for the project site, apply for a development permit, and provide construction administration for certain aspects of