Overview

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.

Exemptions

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

If your business does not require this licence, thank you for taking the time to review these requirements. You do not need to proceed further.

How to apply

You will need to provide information on your business, 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 form below.

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  1. Click on the PDF link to save it on your computer.
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Application for a Prepaid Contracting Business Licence (PDF, 83 KB)

Your responsibilities

  • 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.
  • 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.
  • All records, files, books, papers and other related documents must be maintained for 3 years after creation. These records may be subject to inspection by an inspector appointed under the Consumer Protection Act.
  • A business must have a licence and must produce it when asked to by a person it approaches to make a direct sale, an inspector appointed under the Consumer Protection Act, the Director, or a peace officer.
  • 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 person to whom they make or attempt to make a direct sale, an inspector appointed under the Consumer Protection Act, the Director, or a peace officer.
  • 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.
  • Compliance

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

Contact

To 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: sa.businesslicensing@gov.ab.ca