What Does the RBQ Licence Bond Cover?

Since September 25, 2008, the Régie du bâtiment du Québec (RBQ) licence bond is mandatory for all contractors. A licence bond is a financial guarantee acquired by contractors, holding them accountable for the commitments made to paying customers.

The RBQ licence bond was designed to protect homeowners by compensating them for losses incurred due to incomplete or unexecuted work commissioned, paid amounts, or issues related to poor workmanship and defects identified within one year of the project’s completion date.

Why hire a contractor who holds an RBQ licence bond? How does this system protect homeowners and customers? This is what we’ll explore in this article.

Why Hire a Contractor with an RBQ Licence?

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Besides being mandatory for certain jobs, RBQ licences provide added value, proving to be very beneficial to customers. If a contractor doesn’t have a valid licence, should a problematic situation occur, the customer won’t have access to a bond. As such, it’s best to deal with licensed contractors. 

On the customer’s side, it’s much more advantageous to deal with a licensed contractor, as they’re less likely to take off with the project deposit or provide subpar workmanship. To find out whether your contractor’s licence is still valid, check the RBQ’s licence registry. 

Since December 9, 2011, fines have been significantly increased; individuals who are caught working without an RBQ-issued licence are subject to a fine ranging from $10,756 to $80,668 for natural persons, while fines range from $32,267 to $161,334 for moral persons. 

Moreover, to prevent unlicensed work, the RBQ put together a team of investigators whose mission is to take action against such circumstances, especially when it comes to self-construction and residential renovation. Additionally, the RBQ strongly encourages any person to report unlicensed work.

RBQ, CMMTQ, and CMEQ Licence Bonds

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Broadly speaking, licence bonds work as a financial guarantee. Said guarantee is obtained by contractors through a financial institution, insurance company, or financial organization. Whether it’s an RBQ, CMMTQ, or CMEQ licence, contractors operating legally have the ability to acquire a licence bond. For customers, said bond serves as financial compensation should the project go awry, uncompleted, or unexecuted.

When it comes to a general contractor, the sum can amount to $40,000, while for specialized contractors, the bond is $20,000 at most. Naturally, if the contractor doesn’t hold a valid licence at the time the contract is signed, the customer won’t be compensated. So it’s important to check whether the contractor is licensed and ensure said certification is still valid.

A licence bond can be obtained through contractor associations, specific insurance companies, or a construction bond company.

What Is Not Covered by the RBQ Licence Bond?

Generally speaking, an RBQ licence validates the contractor’s construction skills and building knowledge. A licence is proof of a contractor’s ability to manage employee safety and construction job site compliance.

The licence bond is meant to cover all customers who have suffered from a loss after having hired a contractor to carry out a construction job. However, licence bonds only cover certain aspects, such as:

• Financial loss due to delayed project completion

• Claims lodged against persons involved with the construction job

• Damages stemming from pain and suffering, including punitive damages

Making a Claim Under a Contractor’s RBQ Licence Bond

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To access a contractor’s licence bond, you first have to obtain a court ruling in your favour. If so, you then have to follow the steps detailed on the RBQ website by filling out a form and submitting several documents.

Still haven’t filed a claim against the contractor at fault? Check out our article about legal recourse available for poorly executed work. Also, you can head to the Legalhood website, which provides several services, including drafting cease and desist letters. This may help you settle the matter outside of court, without pursuing the issue any further.