Most renovation problems start before any work does: at the hiring stage. The Government of Alberta publishes clear guidance for homeowners, and the rules on prepaid contractors are worth knowing. Here's a practical checklist, based on the province's and the City's own pages.
1. Know the prepaid contracting rule
In Alberta, a contractor who takes money before the work is finished and discusses or signs the contract away from their normal place of business (for example, at your kitchen table) is a prepaid contractor. According to the Government of Alberta, prepaid contractors must hold a prepaid contracting licence from Service Alberta and post security. They must show proof of the licence on request. You can check a business with Alberta's "Find a licensed business" search.
2. Get more than one written estimate
Alberta recommends written estimates from more than one business, each including:
- a complete description of the work;
- the type and quality of materials;
- start and completion dates;
- itemized costs and the total price;
- any guarantees;
- the payment method.
3. Check WCB, insurance and qualifications
- Ask for the contractor's Workers' Compensation Board (WCB) number.
- Ask for an insurance certificate showing public liability and property damage coverage.
- Check the trade qualifications of the people doing the work. Qualified tradespeople have a certificate issued by the Government of Alberta, and electrical, plumbing and gas work must be done by the licensed trade.
4. Watch for warning signs
The province suggests avoiding contractors who:
- knock on your door with a "special price" because they're in the area;
- offer a discount if you let them advertise using your home;
- quote without seeing the job;
- demand a large down payment for materials;
- won't give you a written contract;
- give only a P.O. box or an answering service as contact details;
- won't commit to start and finish dates.
5. Sort out permits
The Government of Alberta notes that the homeowner is ultimately responsible for making sure the necessary permits are in place before work starts. In Calgary, a contractor doing the work pulls the trade permits, as the City explains on its basements and hiring-a-contractor pages. Your contract should say who gets the permits and books inspections. See our basement permit guide and bathroom permit guide.
6. Put it in the contract
Alberta's contract checklist includes: a detailed scope, materials, any subcontracted work, who is responsible for permits and inspections, that work meets local codes, debris removal, an itemized payment schedule including any holdback under the Builders' Lien Act (now the Prompt Payment and Construction Lien Act), warranties, the insurance certificate, the WCB number, cancellation rights, and how disputes will be resolved. Fill blanks with "N/A", initial any changes, and get changes to the work in writing with the price change.
Questions?
Service Alberta's consumer line for questions about hiring a contractor is 1-877-427-4088. If you're planning work with us, we're happy to walk through any of these points. Get in touch.
Frequently asked questions
Does my contractor need a licence in Alberta?
There's no general provincial licence for all renovation contractors. A contractor who takes payment before work is complete and makes the contract away from their business must hold a prepaid contracting licence. Some municipalities, such as Airdrie, require contractors to hold a municipal business licence, and trade work requires certified tradespeople.
How much of a deposit is normal?
Alberta doesn't set a single figure. The province warns against contractors who demand a large down payment for materials. Agree on a clear payment schedule in the written contract.
Who is responsible for getting permits?
The contract should say. The Government of Alberta notes that the homeowner is ultimately responsible for making sure permits are in place.
Sources
- Government of Alberta: Hiring a contractor
- Government of Alberta: Prepaid contracting business licence
- City of Calgary: Home renovations and basements
Rules, programs and prices change. Always confirm details with the source before you plan or budget.
