Not all Contractors are the same.
“My Contractor keeps asking for more money, but I do not see the work pushing through. I have given him over $15,000 in advances; now I cannot reach him!” This was a painful phone call we recently had with a potential client, and unfortunately, trying to recoup that lost money will be very hard for them.
Not all Contractors are the same, and to protect yourself, you MUST ensure you do your due diligence and check if your potential Contractor has a Prepaid Contracting License from Service Alberta. This will protect you from Contractors running away with your hard-earned money.
What is a Prepaid Contracting License?
A prepaid contracting license is an important consideration when hiring a contractor in Edmonton, as it helps protect consumers and ensures that contractors operate their businesses legitimately and responsibly. Here are some reasons why a prepaid contracting license is important:
Consumer Protection
Contractors must be licensed to ensure they meet specific requirements and can be held accountable for their work. To qualify for the license, the Contractor must have a clean criminal record. This, in turn, provides an essential level of protection for consumers.
Dispute Resolution
Suppose a dispute arises between you and the Contractor. In that case, the fact that they hold a prepaid contracting license can facilitate dispute resolution through official channels, making it easier to seek a resolution or compensation for a runaway work.
Insurance and Bonds
Licensed contractors are required to carry liability insurance and bonds, which provide an additional layer of protection for consumers in case of accidents, property damage, or other unforeseen events during the construction or renovation process.
How does this apply to you and your family?
For example, ABC Renovations Inc. received a deposit of $20,000 from you to renovate your basement as per the contract. They agreed to start and finish the work on a specific date. During the initial weeks, they were punctual, but after a week, they asked for an additional $5,000 to continue the work. You trusted them and gave them the extra amount. However, on the day they were supposed to resume work, they did not show up, and when you called, they assured you that everything was fine and they would continue in a few days. But even after the promised days, they failed to show up, and now you could not get hold of them. Your attempts to reach them went in vain, and you are currently frustrated as you are out of $25,000, and the basement work is still incomplete.
Since ABC Renovations Inc. does not hold a Prepaid Contracting License, you now have barely any protection. Your way to get a resolution at this point is through the slow Judicial System, which will cost you a lot of money hiring the right lawyer and time in the queue.
If ABC Renovations Inc. was licensed, you can file a claim through Consumer Protection Services of Service Alberta. If it is proven that the Contractor had run away with your deposit, the money will be given back through an Insurance Bond.
Important Lesson:
Do not choose a contractor just because they are cheaper. Often cheap means a headache in the Construction Service Industry. It is important that you do your due diligence.
