Prepaid contracting licence

Overview

A prepaid contracting business:

• solicits, negotiates or concludes prepaid contracts in person at any place other than the sellers’ place of business
• accepts money before all the work is done or the services are provided or both

Prepaid contracts are for construction, maintenance, repairing, altering, adding to or improving private dwellings, or real property used in conjunction with a private dwelling such as landscaping services.

Exemptions

The following prepaid contracts are exempt from licensing requirements:

• contracts for business or commercial buildings
• contracts between contractors, sub-contractors and sub-trades
• contracts for home construction covered by the Alberta New Home Warranty Program that include pre-possession insurance or deposit insurance
• contracts for the construction or renovation of a home covered by the National Home Warranty Program
• contracts for drilling or maintaining water wells covered by the Water (Ministerial) Regulation, where the contractor holds a Class A, B or D approval for water wells

How to apply

You will need to provide:

• information on your business
• a criminal record check or police information check
• a security
• a copy of standard contracts or agreements
• payment of a licensing fee

To get started, follow the instructions below to save and open the application form.

Application form

Application for a Prepaid Contracting Business Licence

Your responsibilities

Licence holders must notify Service Alberta and Red Tape Reduction in writing within 15 days of a change in:

• business address
• partners of the business if the licence is issued to a partnership
• officers or directors of the corporation if the licence is issued to a corporation

Licence holders must notify Service Alberta and Red Tape Reduction in writing within 15 days of ceasing to carry on the activities for which the licence was issued.

It is your responsibility to ensure your licence is in force as long as you continue to do business. Once your licence is issued, note the expiry date and ensure your licence is renewed prior to this date.

Licensees must be able to provide confirmation of licensing on request. This can be done by providing a copy of the licence or by providing other confirmation that the business is properly licensed. This can include providing a link to the Find a Licensed Business search tool.

Records retention

All records, files, books, papers and other related documents must be maintained for 3 years after the date of creation. These records may be subject to inspection by an inspector appointed under the Consumer Protection Act.

Business ID cards

The business must provide an identification card for persons selling on its behalf. The identification card must have:

• the person’s name
• the business name, address and licence number
• must be signed by the signing authority appointed by the business

The individual must produce their identification card when asked to by a consumer or potential consumer, a peace officer, an inspector or director appointed under the Consumer Protection Act.

Compliance

Note: applicant, directors, officers and partners are required to read the Consumer Protection Act and its regulations associated with this licence and understand that certain sections are of significance, including but not limited to the specific sections noted below.

Consumer Protection Act

• Sections 26, 27, 28, 29, 30, 31, 32, 33 and 34 regarding cancellation of direct sales contracts
• Section 35 regarding contents of sales contracts

Prepaid Contracting Business Licensing Regulation

Direct Sales Cancellation and Exemption Regulation

Contract Requirements Checklist

Designation of Trades and Businesses Regulation

General Licensing and Security Regulation

Prohibited practices include, but are not limited to:

• A prepaid contracting business or its representatives shall not enter a consumer’s home without expressly being invited into the home by electronic means such as a text or email to the business permitting their entrance.
• A consumer may permit the business access to the home on a business website, or in attendance at a business's normal place of business, or at such other place where the direct selling business is conducting business
• This includes efforts to solicit, negotiate or conclude a consumer transaction for furnaces, air conditioners, water heaters, windows or energy audits, in-person at a consumer's home.

Copies of legislation can be obtained from the Alberta King’s Printer.

Contact

Connect with the Consumer Contact Centre:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-4088
Toll free: 1-877-427-4088 (in Alberta)
Email: [email protected]

Related

• Find out if a business is licensed