Laws of Alberta Governing Contractors:

A: In order to obtain any monies up front for materials/labor the law in Alberta states that the contractor has to have a valid pre-paid contractors license (this is the law); this license encompasses a surety bond by an insurance company for either $10,000.00 to $25,000.00. The difference is that a $10,000.00 dollar bond restricts a company to one type of service up to a maxim of $5,000.00 dollars work/service ; i.e.: (painting, just one bathroom at a time). The $25,000.00 bond is unrestricted for work/labor. These bonds assures the customer in the event that a contractor defaults/quits etc. the customer will receive the monies funded or work completed.

Keep in mind that this license has to be accompanied by a contract also registered with the province.

B: Check to see that the contractor has a GST number

C: Check to see that the contractor has a local business license

Information to protect you the customer that is recommended but not mandatory:

A: Liability Insurance: this insurance is provided by the contractor to cover mishaps or property damage by the contractor or his employees. This coverage usually ranges 1 to 2 million dollars and cost the contractor $1500.00 dollars to $3000.00 per year. Without this coverage you are responsible for any mishaps and property damage (your insurance).

B: Workers Compensation: This coverage is provided by the contractor to insure that any injuries that occur while on the premises of the customer, the customer is not liable or sued. This coverage is not necessary if the contractor does not have any employees, (note: the contractor then should have his own personal insurance. Again if he does not have insurance you the customer is liable). The cost to the contractor is approx. $10.00 per $100.00 dollars paid to employee.

C: Advertising: This cost is necessary for the contractor to provide the customer with excellent working credentials and information about the contractor. This costs approx. $300 dollars per month for the contractor.