Hiring a contractor in Alberta: the rules

No Alberta law caps the deposit amount. Instead, the deposit itself triggers a licence: a business that solicits or signs a home improvement contract away from its place of business and takes any payment before the work is fully done is a prepaid contracting business and must hold a Service Alberta prepaid contracting licence backed by a security bond. This licensing condition applies whenever those criteria are met.

Alberta has no provincial licence for general contractors; municipal business licences apply in most cities. Since December 2017 residential builders of NEW homes must hold a builder licence with Municipal Affairs, and municipalities verify the licence and warranty before issuing a building permit. For renovations, the prepaid contracting licence above is the provincial check that exists when deposits are taken.

A direct sales contract (solicited or signed away from the business premises) carries a 10 day cancellation right after you receive your signed copy, no reason needed, extendable to one year when the contract or licence requirements were not met, with your refund due within 15 days.

The prepaid contracting bond is the fund behind an up-front payment gone wrong, which is why the licence matters. New homes built since February 2014 carry the mandatory warranty: 1 year labour and materials, 2 years for delivery systems, 5 years building envelope, 10 years structural. Renovations have no warranty program.