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Contractor Deposits

The fall renovation season is underway and here’s a reminder about the rules for deposits and pre-payments when hiring Contractors and Tradesmen. 

The Alberta Fair Trading Act states, contractors who go door-to-door looking for work “or” who negotiate a job or sign a contract at your home “and” take money up-front before the job is done, must have a Provincial prepaid contractor licence and post a security.  

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The law also says contracts must contain information like the name and phone number of the contractor, an itemized list of  products or services, the completion date and an explanation of the consumer’s cancellation rights. 

Consumers also have 10 days to cancel a contract after receiving a written copy of it and the contractor must give you a refund within 15 days. 

If the contractor isn’t licensed, or doesn’t start the work within 30 days of contract date, or the contract isn’t complete, you have one year to cancel.   

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For more information here is a link to the Home Renovators Tipsheet.  http://www.servicealberta.gov.ab.ca/ConsumerTipsheets.cfm 

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