- Fraudulent Home Renovators and Contractors-
(403) 245-0533 / (403) 651-9049
Alberta in general, and especially Calgary has a shortage of skilled and qualified trades people. The result of this situation is that if one wishes to renovate their house, it may take months to secure a reputable contractor to do the job.
Unfortunately, this is the exact recipe for fraud in this area. Rainbow Investigations has obtained numerous judgments against unqualified contractors, and in fact about 20% of our civil claims, which we have processed on behalf of clients, involve poor construction in one form or another. Some of our files involve contractors who have been prosecuted numerous times over as long as 10 years!
Service Alberta has produced an excellent document on the guidelines for selecting a home renovator which you can access right here (requires the Adobe PDF reader to be viewed).
Probably the most common red flag involves the use of “retainers” or down payments. If the contractor is requesting a down payment he/she must have a Prepaid Contractors License. You can check to see if the contractor has such in the above document from Service Alberta.
If they do not have such a license, you pay the labour costs to do the job only when the job is completed.
Another issue which Rainbow Investigations has run into to which seems to cause confusion among the public is the use of “Builder’s Liens”. A Builder’s Lien is a legitimate mechanism for compliant and reputable contractors to get paid. However, we have run into some contractors using a builder’s lien as a threat to get consumers to advance monies for work that is shabby.
While of course, preventing poor construction work is always the best, but if you have had the misfortune of advancing monies for poor work, call us. We are very experienced at lawsuits in this area!
Contractor / Construction / Renovator Stories
Spring Time Means Contractor Fraud Time In Alberta
Construction fraud booms with the spring weather in Alberta...
February 28, 2005
Contractor Renovator Fraud Booms In Alberta
As Alberta's booming economy continues to lure people away from other parts of Canada, the construction industry cannot keep up to the demand for construction and renovation work…
February 12, 2001
Edmonton Contractors Charged Under Fair Trading Act
The charges include operating without prepaid contracting business licenses…
August 01, 2000
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