British Columbia Government Contractor Payment Terms Guide

Do you run a company with business-to-government (B2G) contracts with British Columbia, or are you hoping to win a contract? Knowing your timeline for payment is essential, but keeping up with policies can be challenging because government contractor payment timelines across Canada vary. In this guide, we’ll walk you through what to expect while working for the provincial government and how to accelerate payments if you need them faster. 

Typical Payment Terms for Government Contractors in British Columbia

British Columbia does not have legislation that mandates payment timelines for vendors working with provincial ministries or public sector organizations. Instead, payment expectations are shaped by the Core Policy and Procedures Manual, which guides procurement across ministries but does not require specific terms.

That said, most contracts issued by the B.C. government follow a net 30 structure. This means suppliers are typically paid within 30 calendar days of invoice approval and acceptance of goods or services. While this is widely followed, it’s not guaranteed. Each agency or department may include its own payment timelines in the contract, which makes it essential to review the terms carefully before work begins.

If you want the option to charge interest on late payments, the contract must include a clear clause outlining the rate and conditions. Otherwise, the province has no obligation to compensate you if payment is delayed.

Common Reasons for British Columbia Government Contract Payment Delays

Even with net 30 terms built into many contracts, delays can and do occur. These aren’t always the result of poor practices. Often, they reflect how decentralized and detail-driven the public payment system is in British Columbia. Understanding the most common sources of delay can help you navigate the process more effectively.

Invoicing and Approval Delays

Invoices submitted with missing information, incorrect purchase order numbers, or misrouted to the wrong contact can be delayed significantly. In B.C., each ministry or public agency may have different internal workflows for invoice approvals. If your invoice hasn’t reached the right reviewer or if the goods or services haven’t been formally accepted, the clock doesn’t start ticking.

Errors, Disputes, or Documentation Gaps

Any mismatch between what’s stated on your invoice and what’s on the purchase order, delivery records, or contract agreement can trigger a manual review. This is especially true for services rendered over time, milestone-based work, or change orders that weren’t fully documented. Until those issues are resolved, payments can be held.

Differences in Department-Level Execution

While the Core Policy and Procedures Manual provides centralized rules for payment processing, each ministry or agency may handle internal approvals and batching differently. These variations can affect how quickly an invoice moves through the system, even if the overarching policy is consistent.

How to Get Paid Faster on Government Contracts in British Columbia

If you’re trying to avoid payment delays or troubleshooting a slow payment, the tips below will help things stay on track. 

1. Set Clear Payment Terms in Your Contract

Net 30 is common in B.C., but it’s not legally required. Every contract should clearly define payment timelines and expectations.

• Define Your Terms: Spell out how many days the client has to pay after receiving and accepting your invoice.
• Include Late-Payment Clauses: Interest must be written into the agreement; otherwise, there’s no obligation to compensate you for delays.
• Clarify Milestone or Partial Billing Rules: For ongoing projects, outline when and how you’ll invoice, such as monthly, by percentage, or on delivery.

2. Double-Check Invoice Requirements

Most delays stem from invoices being incomplete, inconsistent, or sent to the wrong place.

• Match Contract References Exactly: Use the correct PO number and ensure names and dollar amounts align with the agreement.
• Submit Detailed Descriptions: Include quantities, dates, and deliverables. Vague billing invites rejection or review.
• Use Accepted Formats: Some ministries prefer e-invoicing or specific templates, so check in advance. 

3. Submit Through the Right Channels

Each B.C. ministry or public sector organization may have its own invoicing process, and sending invoices to the wrong place is a common reason for delays.

• Confirm the Correct Submission Method: Most invoices are submitted by email or according to the terms outlined in your agreement. Some ministries, such as Social Development and Poverty Reduction, offer online submission through tools like the Service Provider Portal.
• Save Proof of Submission: Always record when and how the invoice was sent, including confirmation emails or portal receipts.
• Understand Processing Windows: Some departments batch invoice approvals weekly or bi-weekly. Knowing when your invoice is likely to be reviewed can help you time your follow-ups.

4. Stay Proactive After Submission

Even perfect invoices can get lost in busy systems. Regular communication helps ensure yours doesn’t sit in a queue.

• Know Who Handles Approvals: Establish a contact at the ministry or agency level.
• Follow Up Within 30 Days: If payment hasn’t arrived, reach out to confirm the invoice has been received, accepted, and scheduled.
• Document Everything: Keep a log of interactions in case issues escalate or recur.

Factoring Invoices for British Columbia Government Contractors

Waiting weeks, or even months, for government payments can tie up your operating capital and slow your ability to take on new contracts. However, factoring for government contractors gives you an alternative: access to working capital now, without borrowing or waiting for invoices to clear.

How Factoring Works for Government Contractors in British Columbia

With invoice factoring, you sell your invoices to a third-party factoring company and receive most of the invoice’s value right away. Most factoring companies can have the money in your account within 24 to 48 hours, though some offer same-day payments.

Benefits of Factoring for British Columbia Contractors

• Immediate Access to Cash Flow: Advance funding allows you to cover payroll, materials, or overhead without waiting for payments to come through.
• No Additional Debt or Interest Charges: Factoring converts accounts receivable into working capital. This is not a loan. There are no repayments or interest schedules. 
• Simplified Approval Process: Factors look at the creditworthiness of your client rather than relying on your personal or business credit. Because government payers are generally seen as reliable, getting approved for factoring is fast and easy.
• Support for Ongoing Growth: If a new contract requires upfront costs or hiring, factoring lets you ramp up confidently without draining reserves. 
• No Long-Term Commitments: Contracts are flexible. You can leverage spot factoring and use the service only when needed or factor in more often.

Types of British Columbia Government Contractors That Leverage Factoring

Because managing payment cycles as a government contractor can be challenging, and most businesses qualify, it can be a good fit for many industries. We’ll explore a few below.

• Construction: Companies working on provincial infrastructure, road maintenance, or public building upgrades leverage specialised factoring for construction businesses to manage expenses tied to materials, subcontractors, and staging costs.
• Janitorial Service Companies: Contractors that clean schools, hospitals, and government offices often improve cash flow between billing cycles with support from factoring solutions for janitorial service companies.
• Security Guard Companies: Invoices for work at courthouses, transit systems, or public events are commonly submitted monthly. Access to working capital through factoring for security guard companies can help you meet payroll and expand contracts.
• Temporary Staffing: Government contracts involving event staff, clerical support, or community services often require upfront payroll coverage, which makes factoring for temporary staffing firms a practical solution.
• Healthcare: Medical companies supplying care aides, equipment, or administrative support to provincial health authorities sometimes use healthcare factoring services to stay ahead of expenses tied to ongoing service delivery.

Get Paid Faster for Your British Columbia Government Contractor Payments with Factoring

If government red tape is preventing you from getting paid in a timely manner and making your cash flow sluggish, factoring can help. To explore your options, talk to a factoring specialist.

Editor’s Note: Please note that every effort has been made to ensure the accuracy of the information provided, and links to policies are included for your reference. However, contract terms are set by individual jurisdictions and are subject to change. Be sure to check with relevant regulatory bodies and your contract as needed.

FAQs on British Columbia Government Contract Payment Terms