Consumer Alert - Homeowners in Need of Repairs Beware

July 20, 2004

Edmonton... With the recent bad weather, many Albertans may find themselves needing repair work on their homes. Homeowners should be careful when hiring someone who knocks at their door offering to make the repairs.

Under the Fair Trading Act, special rules apply to contractors who enter into contracts away from their normal place of business and who ask for money before a job is fully completed. Such contractors must be licensed as prepaid contractors and must post a security bond with Alberta Government Services. The security can provide some protection for consumers when dealing with a licensed prepaid contractor.

Albertans can ask to see proof of an active prepaid contracting business licence. Albertans also have the unconditional right to cancel within 10 days any prepaid home renovation contract solicited, discussed or finalized in their homes. Additional cancellation rights exist in certain circumstances.

In all cases, consumers are advised not to agree to any renovation or repair work until the full repair details and costs are disclosed in writing before the work is started. Consumers should also consider a holdback provision in their contract. This allows consumers to deal with any deficiencies and ensure that any suppliers have been paid.

Homeowners who think they have signed a contract with an unlicenced pre-paid contractor are requested to contact Government Services' Consumer Information Centre toll-free at 1-877-427-4088. Consumers are also encouraged to check references as well as confirming the contractor's complaint history through the local Better Business Bureau.

A free tipsheet called Home Renovations and Repairs is available through the Alberta Government Services' web site, www.gov.ab.ca/gs. Click on Forms, Publications and Tipsheets for a copy.

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Media enquiries may be directed to:

Terry Cunha
Communications
Alberta Government Services
(780) 415-6051