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.
Note: A prepaid contracting business shall not solicit, negotiate or conclude a consumer transaction for furnaces, air conditioners, water heaters, windows or energy audits, in person at a consumer's home unless the following condition is met. Before the business attends at the consumer's home the business is expressly invited into the home by the consumer by:
- phone, email, text or other electronic communication, or
- through the business' website, or
- in person at the business's normal place of business or at such other place where the direct selling business is conducting business.
The following contracts are exempt:
- 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
There is a one-year licensing fee of $60, payable to the Government of Alberta.
How to apply
You will need to complete an application form, provide a security, provide a copy of a sales contract or invoice and pay a licensing fee. To get started, follow these instructions to save and open the application and other applicable forms.
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.
Step 1. Fill out the application form
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- Open the PDF from within Adobe Reader. You can now fill and save your form.
Application for a Business Licence (PDF, 83 KB)
Question #9 on the application needs to include a detailed description of goods or services to be sold, and selling method. The following is a list of potential goods or services which may be offered by prepaid contractors. Please provide a comprehensive list as prepaid contractors are only licensed for those goods or services listed on their licence.
Note: This is not a fully inclusive list of services offered by prepaid contractors. Additional services may be considered/added.
Do not print and include this page –
your list must be entered on your application in section 9.
- Concrete work / paving / foundations
- Counter tops
- Custom closets
- Drywall / plastering
- Excavation / trenching
- Finish carpentry
- Flooring / floor coverings
- Garage doors
- HVAC rentals
- HVAC sales
- Interior decorating
- Mold remediation
- New additions to existing homes
- New home construction
- Roofing / eavestroughing
- Rough construction
- Security systems
- Siding / stucco
- Solar panels
- Solar water heating systems
- Stone work / masonry
- Sunrooms / solariums
- Swimming pools
- Underground water heating (geo thermal)
- Windows / doors
Step 2. Obtain and provide security
Obtain and provide an original, signed security in the required amount*.
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.
You may get this security in one of 4 ways:
- General Surety Bond
- Cash Security Agreement accompanied by one of the following:
- Irrevocable Letter of Credit
- Cash (bank draft, money order or certified cheque payable to the Government of Alberta)
- Term deposit or similar instrument in the name of the Government of Alberta, c/o Service Alberta, 3rd Floor, 10155 102 Street NW, Edmonton, Alberta, T5J 4L4, in trust for (name of licensee)
Depending upon the option selected please do the following:
- General Surety Bond (PDF, 121 KB)
- The surety company will complete and provide you with a signed and sealed original of the form. You will need to review, sign, affix your company seal or have your signature witnessed, and provide the original to the address on the form.
- The form may be found at https://cfr.forms.gov.ab.ca/Form/CONP0045.pdf (PDF, 121 KB). Please provide this address to your Surety Company.
- Cash Security Agreement (PDF, 120 KB)
- Complete, print, sign, affix your business seal or have your signature witnessed, and provide the original to the address on the form.
- The form may be found at https://cfr.forms.gov.ab.ca/Form/CONP0057.pdf (PDF, 120 KB).
- Irrevocable Letter of Credit (PDF, 119 KB)
- The financial institution will complete and provide you with a signed original of the form letter. You will need to review and provide the original to the address on the form.
- The form may be found at https://cfr.forms.gov.ab.ca/Form/CONP0123.pdf (PDF, 119 KB). Please provide this address to your financial institution.
* In accordance with the Security agreement, the security provided will be held for 2 years after the agreement expires or 2 years and 3 months (27 months) from the date the business licence expires, or the business closes or longer in the event of a claim being received. The amount of security given is a minimum security requirement. The amount could increase at the discretion of the Director of Fair Trading. When setting the security amount, the Director can consider the department’s previous history with the business and its partners or directors, the business’ financial history, and criminal convictions.
Step 3. Provide a copy of the sales contract or invoice
- Use the contract requirements checklist (PDF, 289 KB) to confirm your contract or invoice meets requirements under the Consumer Protection Act.
- The contract or invoice must include a statement of cancellation rights that conforms with the requirements set out in the regulations and must:
- contain the words set out in the Schedule
- show the title in not less than 12 point bold type
- show the statement of 10-day cancellation rights in not less than 12 point bold type
- show the remainder of the information in not less than 10 point type
Note: If the Buyer’s Right to Cancel cannot be printed on the front of the contract, a notice must be printed in not less than 12 point bold indicating where on the contract it can be found.
The following must appear in each statement of cancellation rights, formatted exactly as follows:
Buyer’s Right to Cancel
You may cancel this contract from the day you enter into the contract until 10 days after you receive a copy of the contract. You do not need a reason to cancel.
If you do not receive the goods or services within 30 days of the date stated in the contract, you may cancel this contract within one year of the contract date. You lose that right if you accept delivery after the 30 days. There are other grounds for extended cancellation. For more information, you may contact your provincial/territorial consumer affairs office.
If you cancel this contract, the seller has 15 days to refund your money and any trade-in, or the cash value of the trade-in. You must then return the goods.
To cancel, you must give notice of cancellation at the address in this contract. You must give notice of cancellation by a method that will allow you to prove that you gave notice, including registered mail, fax or by personal delivery.
Step 4. Provide additional information
In certain circumstances additional documents are required:
- Statutory Declaration (PDF, 978 KB) where independent contractors are utilized
Step 5. Submit the application form
Email your application form, a copy of a sales contract or invoice, and any required additional information to email@example.com. Provide your original security document(s) to the address noted on the form(s). You will be contacted to set-up online payment for the one-time $60 licensing fee.
You may also mail or drop off your application package to the address noted on the application. You may pay by credit card online, by credit card or debit card in person at our office, or you may mail a cheque or money order to our office.
When paying by cheque or money order please make it payable to the Government of Alberta.
Processing of your application will not start until payment is received.
After you apply
Licence takes effect the day the licence is 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 please make note of the expiry date and ensure your licence is renewed prior to this date.
Licence holders must notify Service Alberta 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 in writing within 15 days of ceasing to carry on the activities for which the licence was issued.
- 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 police 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 for persons selling on its behalf:
- The identification card must have the person’s name and the business name, address and licence number, and must be signed by the signing authority appointed by the business.
- The individual must produce their identification card when asked to by a police officer, a person to whom they make or attempt to make a direct sale, or an authorized Officer of Service Alberta, Consumer Services Division.
- If any of the applicant, partners, directors or officers primary residence is Out-of-Canada, a criminal record check is required from the jurisdiction of the individual’s primary residence which follows the requirements set out by Citizenship and Immigration Canada or a check provided by a local policing organization (i.e., state or municipal police service) provided the results include national records. For US applicants, a criminal history record information check performed by a vendor from this list is also acceptable.
Copies of legislation can be obtained from the Queen’s Printer Bookstore.
Renewing a licence
You may use Service Alberta’s PABLO (Province of Alberta Business Licensing Online) to renew your licence.
This system is used for processing payments, printing issued licenses and renewing licenses.
- Applications submitted by email, fax or without payment will have a user ID created in the name of the applicant and provided to their email address. They will need to submit payment or their application will not be processed.
- Once issued, licenses are made available electronically for printing by the business. If an ID does not already exist one will be created and provided to the applicant’s email address along with notification the licence has been issued. If an ID was created for payment of the fees the applicant will receive an email notification the licence has been issued.
- Within 60 days prior to the expiry of a licence a renewal may be processed using this system. Mark your calendar as a reminder so you stay continuously licensed.
To connect with the Consumer Contact Centre: