Contractors who accept money before work is complete and look for work, discuss or finalize a contract away from their normal place of business (ex. in your home) are considered prepaid contractors. A prepaid contractor must be licensed by Service Alberta and post security. If the business is negligent in performing its services or providing the goods, an affected consumer can submit a claim against the security.
Check with Service Alberta to find out if a contractor is licensed as a prepaid contractor. Call the Consumer Contact Centre toll free in Alberta at 1-877-427-4088.
If a prepaid contract is worth $200 or more, the Prepaid Contracting Business Licensing Regulation requires the contractor to give you a written contract.
Avoid contractors who:
Knock on your door to tell you they just happen to be doing some work in the area and can give you a special price
Promise a discount if you allow them to use your home to advertise their work
Quote a price without seeing the job
Refuse to give you a written contract outlining what they will do or who won't allow you to get other estimates
Provide a post office box as their address or an answering service for a telephone number
Will not commit to a specific start and completion date
Ask you to take out the appropriate permits or indicate that they are not taking out a permit at all. The person doing the work is the person required to take out a permit. Permits are for your protection and help ensure that work meets safety code standards to protect the safety and value of your home.
