Prepaid Contracting Licence


Definition

A prepaid contracting business:

  • Solicits, negotiates or concludes prepaid contracts in person at any place other than the sellers’ place of business, and

  • Accepts money before all the work is done and /or the services are provided

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

Exemptions

  • Contracts for business or commercial buildings

  • Contracts between contractors, sub contractors and sub trades

  • Home construction contracts covered by the Alberta New Home Warranty Program or the National Home Warranty Programs

  • 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 

     Submit your complete application package via e-mail.                

Licensing Requirements

Note: Failure to provide complete information will delay processing of your application and may result in a refund of your fees and closure of your file.

To get a licence as a prepaid contractor, you must provide a complete application package including all of the following:

  • Completed application (pdf) form:

     
  • Original, signed security in the required amount. *  You may get this security in one of two ways:

     
    • General Surety Bond (pdf)

    • Cash Security Agreement (pdf) accompanied by:

       
      • An Irrevocable Letter of Credit (pdf), or
         
      • Cash (including payment by bank draft, money order, certified cheque – all of these are payable to the Government of Alberta), or
         
    • A term deposit or other similar instrument in the name of the Government of Alberta, c/o Service Alberta, 3rd Floor, 10155 – 102 Street, Edmonton, Alberta, T5J 4L4, in trust for (name of licensee)
      *Note:  In accordance with the Security agreement, the security provided will be held for two (2) years after the agreement expires or for two years and three months (27 months) from the date the business license expires or the business closes or longer in the event of a claim being received.
      The amount of security depends on the price and type of goods or services provided.  Please contact our licensing office to find out how much security you need to provide.  When setting the security amount, the Director can consider the following:  the department’s previous history with the business and its partners or directors, the business’s financial history, and criminal convictions.
      • A licensing fee of $60  (Note: Your cheque should be made payable to the Government of Alberta.  If you are applying in person, you can also pay this fee using Visa, MasterCard, Debit or cash.  This fee is for a one-year licence.  Licences take effect the date they are issued.  The department will send you a notice and the appropriate form(s) before your licence needs to be renewed.  Licence holders must notify Service Alberta in writing if their business licence address changes.)

      • A copy of the sales contract/invoice, which includes the "Buyers Right to Cancel"

      General Information

      • All records, files, books, papers and other related documents must be maintained for 3 years after creation

      • A business must have a licence and must produce it when asked to by a peace officer, a person it approaches to make a direct sale or an officer of Service Alberta, Consumer Services Division

      • The business must provide an identification card (pdf) for persons selling on its behalf (the identification card must have the person’s name, business name and address, license number, and must be signed by the business’ signing authority)

      Legislation

      Fair Trading Act

      Prepaid Contracting Business Licensing Regulation

      Direct Sales Cancellation and Exemption Regulation


      Copies of legislation can be obtained from the Queen’s Printer Bookstore at: 

      Park Plaza, 5 floor
      10611-98 Avenue
      Edmonton, Alberta  T5K 2P7
      Telephone: 780-427-4952

      To call a Government of Alberta office toll free (in Alberta), dial 310-0000 and follow the instructions.