Is Your Contractor Properly Licensed To Accept Deposits?

July 16, 2021

Is Your Contractor Properly Licensed To Accept Deposits?

The government of Alberta requires home service contractors to acquire a “Pre-paid Contractor’s License” if they want to accept payments before any work is started. It’s surprising how many contractors do not carry this licensing despite requesting deposits. Note that a municipal business license is not the same thing as a Pre-paid Contractor’s License.

The Pre-Paid Contractor’s License requires the contractors to sign a bond and add specific clauses to the contract. One of these clauses gives the buyers a right to cancel the contract.

This blog details the benefits of hiring a properly licensed contractor. Moreover, we have also mentioned the proper method of finding out whether your contractor has a Pre-paid Contractor’s License or not.

What Is a Pre-Paid Contractor?

Service Alberta, a Government Of Alberta unit that deals with contractor licenses, details that:

“Contractors who accept money before work is complete and discuss or finalize a contract away from their normal place of business are considered prepaid contractors under Alberta’s Consumer Protection Act.”

Hence, if a contractor decides to finalize the deal, talks about contract clauses or makes changes to the already finalized contract at your home or a place other than their headquarters, they have to be licensed as a prepaid contractor. Moreover, if a contractor asks you to pay for work in advance, even if it is a fraction of the finalized amount, they have to be licensed as a prepaid contractor.

Contractors who discuss matters of work outside the premises of their headquarters or ask you for a deposit even if they don’t have a Pre-paid Contractor’s License are breaking the law.

How Does Hiring a Properly Licensed Contractor Benefit You?

Depositing a certain amount of money with any contractors, even if it is a fraction of the amount before the work is completed, makes you vulnerable. Hence, the Government of Alberta has added a few licensing requirements to protect Albertans from potential mishaps. Here are a few ways in which a prepaid contractor license protects you as a consumer.

Added Security

Contractors who have acquired a prepaid license from Service Alberta are bonded by the Government of Alberta. This bond is revoked if the contractor cannot complete the scope of work outlined in the customer’s contract. The Government of Alberta then uses this bond to compensate customers. It also serves as a stiff penalty to the contractors.

Ensure Validity

All the team members of the company undergo thorough background checks. If any of the members have a checkered past or have a list of criminal offences, the license is not granted. Hence, if you are hiring contractors who are properly licensed, you won’t have to worry about the company’s validity.

Buyer’s Right To Cancel Clause

Licensed contractors are required to enter a buyer’s right to cancel clause along with the defined scope of work, and a clear payment schedule in the contract. This template of this contract undergoes thorough checks with the Government of Alberta to ensure there are no discrepancies. Hence, even if you don’t have a lot of know-how of how contracts work, if you hire a licensed contractor, the authorities have your back.

How To Determine If The Contractor Is Licensed?

Fortunately, the Government Of Alberta has made it very easy to check if a contractor is licensed or not. All you have to do is visit the Service Alberta website and perform a simple search. Also, select “prepaid contractor” from the dropdown menu in license type. If the company is licensed, you will see a record for the company. However, if it is not; the search will not return any records.

About AKRoN Roofing

AKRoN Roofing is a pre-paid licensed contractor in Alberta with a $25,000 bond that offers cost-effective and resilient roofing solutions in and around Calgary. We provide a variety of the best roofing materials in the market and hold the highest installation standards for all roofs. AKRoN Roofing is a proud member of the Alberta Allied Roofing Association.

We offer quality products for sloped roof replacements with a Class 4 rating from UL, including SBS modified architectural shingles, Euroshield recycled rubber shingles, and F-wave Synthetic shingles. Our other services include, but are not limited to, residential re-roofing with asphalt shingles, TPO and 2-ply membranes for flat roofing, roof repairs, and inspections of all types of roofing material by our qualified team.

AKRoN Roofing is proud of its A+ rating with BBB plus other certifications and accreditations. You can check our accreditations and certifications here. Contact us here for more information.

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