General information about Alberta and City of Calgary rules, written in plain language and linked to the sources. It isn't legal advice. Laws change and details matter, so check the source or talk to a lawyer about your situation.
Most roofing and exterior jobs start with a deposit. That's normal. What many Alberta homeowners don't know is that the law decides who is allowed to ask for it.
Alberta's Consumer Protection Act treats home improvement contractors who take money up front as a licensed trade. The details sit in two regulations: the Designation of Trades and Businesses Regulation, which defines the business, and the Prepaid Contracting Business Licensing Regulation, which sets the licence rules. This guide walks through both in plain language, then covers what you can do if the licence wasn't there.
What prepaid contracting means
The law builds the definition in three steps.
First, a construction or maintenance contract is a contract to build, alter, maintain, repair, add to or improve a home the owner or occupant lives in. It also covers a structure on the same property, like a detached garage, and work on the land around the home.
Second, a prepaid contract is one of those contracts where all or part of the price is paid before all the goods or services are provided. A deposit counts. So does a progress payment before the job is finished.
Third, the prepaid contracting business is soliciting, negotiating or concluding a prepaid contract in person, anywhere other than the seller's own place of business. In practice that usually means at your home.
Put together: a roofer who comes to your house, prices a new roof at your table and asks for a deposit is in the prepaid contracting business and needs the licence.
- Not covered: work on a building used mainly for business, contracts between a general contractor and its subcontractors or subtrades, and new home construction covered by a new home warranty program.
- A contractor who only ever deals with you at their office, and never in person at your home, falls outside this definition. Most roofing sales involve a visit to your home, so most roofers who take deposits need the licence.
What the licence requires: security, renewal and ID
A licence is a set of obligations the business has to keep meeting. It says nothing about the quality of the work.
- Security. No licence is issued or renewed unless the business gives the Director of Fair Trading a security, in a form and amount the Director approves. The Director can raise the amount during the licence term. The regulation doesn't set one fixed dollar figure, so be wary of anyone quoting a specific bond amount as the law.
- Renewal. A licence expires at the end of the 12th month after it's issued or renewed, so it has to be renewed every year.
- ID cards. Every person selling for the licensee must carry an ID card showing their name and the licensee's name, address and licence number. They must show it when a customer or potential customer asks.
What a prepaid contract must include
For prepaid contracts where the goods or services are worth more than $200, the regulation requires the contract to meet the Consumer Protection Act's direct sales contract rules (section 35). It must also set out the quality or type of materials and the services and work to be carried out. The contractor must give you a copy of the signed contract on or before the day work starts, or within 10 days after you sign, whichever comes first.
- Your name and address.
- The business's name, business address and phone number, plus the salesperson's name where applicable.
- The date and place the contract was entered into.
- A description of the goods and services detailed enough to identify them, including the quality or type of materials.
- A statement of your cancellation rights in the wording the regulations set out.
- Itemized prices, the total amount, and the terms of payment.
- The start date for the work and the completion date.
- If credit is involved, the security taken and the required credit disclosure.
- Both signatures.
How to check a contractor's licence
Service Alberta runs a public search of businesses licensed under the Consumer Protection Act. It takes a couple of minutes.
- Go to Service Alberta's Find out if a business is licensed search.
- Choose Prepaid Contractor from the licence type list.
- Enter the business name, or the name they operate under, and the municipality if you know it.
- Compare the result with the name on the quote, the contract and the salesperson's ID card. A different legal name isn't automatically a problem, but you should understand why.
- If nothing comes up, call the Consumer Contact Centre at 1-877-427-4088 before paying anything. The search only shows active licences.
If an unlicensed contractor took your deposit
If a contractor was required to hold the licence and didn't when the contract was made at your home, the Consumer Protection Act gives you an extended right to cancel. You can cancel within one year from the date the contract was entered into. After you cancel, the business must refund all the money you paid within 15 days. If they don't, you can sue to recover it as a debt.
- Stop further payments. Don't hand over more money while you sort this out.
- Gather the paperwork: the contract or quote, receipts, bank or e-transfer records, texts and emails, and a screenshot of the licence search showing no result.
- Give written notice that you're cancelling under the Consumer Protection Act because the business wasn't licensed, and ask for a full refund. Send it by a method that lets you prove you gave notice, such as registered mail, fax or personal delivery. Keep a copy.
- If there's no refund within 15 days, file a complaint with the Consumer Investigations Unit by calling 1-877-427-4088.
- To actually get your money back, look at a civil claim. Alberta.ca notes that claims under $100,000 can be filed in the Alberta Court of Justice. The Act also lets a consumer who suffered a loss from a breach of the Act sue for damages.
When the contractor was licensed but still let you down
A licence doesn't guarantee good work. It does give you one more route. Under the General Licensing and Security Regulation, a consumer can have a claim against a licensed business's security if they lose money because the business broke the Act or its contract, or through fraud, misrepresentation or negligence with money collected. You apply to the Director for a payment from the security, with a statutory declaration (a written statement sworn in front of a commissioner) setting out the claim. You generally can't apply while you have your own court action going on the same grounds.
This is one practical reason the licence matters. An unlicensed contractor has posted no security at all, so this route doesn't exist.
Does a roofer need a licence to take a deposit in Alberta?
If they sell you the job in person away from their own place of business, usually at your home, and take any money before the work is finished, yes. That's the prepaid contracting business as the regulation defines it, and the Consumer Protection Act says nobody may engage in it without a licence.
How do I look up a prepaid contractor licence?
Use Service Alberta's Find out if a business is licensed search and choose Prepaid Contractor as the licence type. It shows active licences only. If you can't find the business, call the Consumer Contact Centre at 1-877-427-4088.
Is a prepaid contractor licence the same as being bonded?
Not exactly. The licence requires the business to give the province a security in a form and amount the Director approves. A bond is one common form of security, but the regulation doesn't require a particular form or a single fixed amount.
What if the contractor has a City of Calgary business licence but no provincial licence?
They're different licences. A municipal business licence lets a business operate in the city. The provincial prepaid contracting licence is what the Consumer Protection Act requires to sell prepaid home improvement contracts in person. A contractor selling that way needs the provincial one regardless of any city licence.
Can I cancel if I've already paid a deposit to an unlicensed roofer?
For a contract made at your home, the Act lets you cancel within one year if the business was required to be licensed and wasn't. The refund of everything you paid is due within 15 days of cancelling.
Where the facts on this page come from. If a source has changed since we last checked, tell us and we'll fix the page.
- Consumer Protection Act, RSA 2000, c C-26.3 (ss. 1, 24, 28, 31, 33, 35, 104, 142.1) · Alberta King's Printer
- Designation of Trades and Businesses Regulation, AR 178/1999 (s. 5) · Alberta King's Printer
- Prepaid Contracting Business Licensing Regulation, AR 185/1999 · Alberta King's Printer
- General Licensing and Security Regulation, AR 187/1999 (ss. 15 to 18) · Alberta King's Printer
- Cancellation Rights: Direct Sales and Prepaid Contracts (FAQ, October 2023) · Government of Alberta
- Prepaid contracting licence · Government of Alberta
- Find out if a business is licensed · Service Alberta
- File a consumer complaint · Government of Alberta