Home Renovations - Tipsheet - Service Alberta

CONSUMER TIPSHome RenovationsThis publication is intended to providegeneral information only and is not asubstitute for legal advice.This publication provides information about home renovationcontracts in general as well as specific information about workingwith prepaid contractors.CONTENTSPageBefore you hire a contractor to do renovations or repairs to yourhome, do your homework.GET WRITTENESTIMATES 1CHECK REFERENCES 2WARNING FLAGS 2HIRE QUALIFIEDTRADESPEOPLE 3SIGNING THECONTRACT 3WORKING WITH PREPAIDCONTRACTORS 4IF YOU HAVEPROBLEMS 6FOR MOREINFORMATION 8GET WRITTEN ESTIMATESGet written estimates from more than one business. Provideeach business with a detailed description of the work you wantcompleted and the materials you want the contractor to use.A written estimate should include:• A complete description of the work that will be done• The type and quality of materials that will be used• The project start and completion dates• Itemized costs and the total price• A statement of any guarantees made by the contractor• The required method of payment.Verbal contracts are hardto prove. Always insist on awritten contract.

Home Renovations• A statement of your cancellation rights• The total price of the contract and the termsof payment• The delivery date for the goods and thecommencement date for the services aswell as the date when all services will becompleted and goods provided• Full cost-of-credit disclosure including detailsabout any security taken for payment• Your signature and the signature of thebusiness’s sales representative.The contractor must give you a copy of thewritten contract at whichever of these timescomes first:• On or before the date the work begins• Within 10 days after you sign the contract.Cancelling a prepaid contractWhen a written contract has been solicited,agreed upon or signed at your home or atanother location away from the contractor’snormal place of business, the Fair Trading Actallows you to cancel the contract up to 10 daysafter you receive your copy. You do not have togive a reason for cancellation.To cancel, you must deliver your notice by anymethod (personal service, fax, registered mail,courier) that allows you to prove the date of yournotice. The notice can be sent to the address onthe contract. If you did not receive a copy of thecontract or there is no address for the business,you can deliver your notice to any address ofthe business known by you, the address of thesalesperson or any address on record with thegovernment.The legislation also states that if you give noticeother than by personal service or verbally, yourcancellation is deemed to be given on the date itwas sent. Keep a copy of your notice.You may keep goods that have been deliveredto you under the contract until the contractorrefunds your money or returns any trade-in youmay have given as part of the agreement. Thecontractor must provide you with a full refundwithin 15 days of your cancellation notice. Afteryou have received your refund, you should allowthe contractor to pick up the goods and thebusiness should remove them within 21 days ofcancellation.If the work started before the end of the 10-day cancellation period, you are still allowedto cancel the contract. However, the contractorhas the right to ask that you pay a reasonableamount for the work that was done up tothe time you cancelled. The contractor mustrefund your money before asking you to payfor the services already provided.A prepaid contractor must be licensedby Service Alberta and post security.5

CONSUMER TIPSNote: If a prepaid contractor’s contract iscovered by the National Home Warrantyor Alberta New Home Warranty Program,the contractor is not required to be licensedby or to provide a security to Service Alberta.However, cancellation rights and disclosurerequirements under the legislation still apply.Extended cancellation rightsYour cancellation rights can be extended for upto one year from the date the prepaid contractwas signed if• the contractor was not licensed when yousigned the contract• the sales contract did not include all theinformation listed in Section 35 of theFair Trading Act, including the requiredcancellation statement• the goods were not provided within 30 daysof the delivery date specified in the contractor an amended date that both you and theseller agreed to in writing• the services were not started within 30 daysof the delivery date specified in the contractor an amended date that both you and theseller agreed to in writing.Note: If you accept delivery of goods orauthorize services after the 30-day period,you cannot cancel the contract.IF YOU HAVE PROBLEMSSometimes things can go wrong despite yourbest efforts.If the completion date passes or it seems thatthe contractor has abandoned the job, start bysending a registered letter to the contractor.State the date you expect the contractor tofinish the job and inform the contractor that ifthe deadline is not met, you will hire anothercontractor to finish the work using the moneyremaining from the original contract. Do thisonly after you have received an estimate fromanother contractor.Other options for handling problems include:• Following the dispute resolution processoutlined in your contract, if applicable• Registering a complaint with your local BetterBusiness Bureau• Making a written report to your municipalinspection department if you believe workdoes not meet Building Code standards.You may have to consider legal action forcompensation if you are unable to resolve yourdispute with the contractor. More information onthe civil claims process is available atwww.albertacourts.ab.ca.Contact Service Alberta if the job wasmisrepresented, the supplier defaulted on aprepaid contract or if you suspect the business isnot following the requirements of the Fair TradingAct.6

Home RenovationsCONTRACT CHECKLISTThe following checklist highlights information that should always be included in a homerenovation contract. Check the section of this publication on Working with PrepaidContractors for requirements that apply to prepaid contracts.A detailed description of the work to be done. Include blueprints if appropriateA statement of the type and quality of materials to be usedA statement of any work that is to subcontracted (e.g. plumbing and wiring)A statement that identifies who is responsible for getting all necessary permits and ensuringthat inspections and approvals by local authorities will be done at the proper times. Thehomeowner is ultimately responsible for making sure necessary permits are in place beforework startsA statement that all work will be done according to local codesA statement that the contractor is responsible for removing all debris as soon asconstruction is completedA clearly itemized payment schedule including any hold-back provisions under theBuilders’ Lien ActA statement of all warranties explaining what is covered, for how long and what will be doneif there are problemsA Certificate of Insurance showing the contractor’s public liability and property damageinsuranceIf the renovations involve a substantial amount of money, you may want to consideradditional protection such as a performance bond in the event the contractor fails tocomplete the workThe contractor’s Workers’ Compensation Board numberA statement outlining any cancellation rightsA statement outlining how problems will be resolvedYour signature and that of the sales representative7

CONSUMER TIPSFOR MORE INFORMATIONSERVICE ALBERTAConsumer Contact CentreEdmonton: (780) 427-4088Toll-free in Alberta: 1-877-427-4088Queen’s Printer BookstoreYou may purchase Acts and regulations from theQueen’s Printer Bookstore:10611 - 98 Avenue, Edmonton, Alberta T5K 2P7Edmonton: 780-427-4952Toll-free in Alberta: Dial 310-0000 then 780-427-4952These are also free for you to download in the “pdf”or “html” formats at www.qp.alberta.caAlberta New Home Warranty ProgramEdmonton: 780-484-0572Calgary: 403-253-3636Toll-free: 1-800-352-8240www.anhwp.comNational Home WarrantyToll-free: 1-800-472-9784www.nationalhomewarranty.comCanada Mortgage and Housing Corporation(CMHC)Information to help assess requirements beforestarting a home renovation project.www.cmhc-schl.gc.ca/en/coCanadian Home Builders’ AssociationInformation about planning your renovations andhiring a contractorwww.chba.ca/Get it in Writing is a program of the CanadianHome Builders’ Association. Information is availableon home renovation topics including choosing acontractor, written estimates and other consumerprotection tips.www.hiringacontractor.comProperty title searchTo search your property title to determine if thereis a lien against the property, you must know thelegal description, Land Identification Number Code(LINC) or the title number for the property you want tosearch. Title searches and certified copies of title areavailable through Land TitleOFFICES AND REGISTRY AGENTSFinding a registry agent:Service Albertawww.servicealberta.ca>Registries>Quick Links - Finda Registry AgentYellow PagesUnder Licence and Registry ServicesLand Titles Offices:Edmonton: 780-427-2742John E. Brownlee Building10365-97 St.Edmonton, AB T5J 3W7Calgary: 403-297-6511J.J. Bowlen Building620-7th Ave. SWCalgary, AB T2P 0Y8A current version of this and other consumerpublications are available at the Service Alberta websitewww.servicealberta.ca. Most public libraries haveInternet access if you don’t have access at home. Ifyou need more copies of this publication, you havepermission to photocopy.812/11