Three Compelling Reasons to Renew Your RBQ Licence

Odds are, as a contractor, you’re looking to provide the best quality work possible to your clients, securing your reputation along the way as you build your career. To measure up to your construction career goals, it’s been established that obtaining an RBQ (Régie du bâtiment du Québec) licence is mandatory. 

Why is obtaining an RBQ-issued licence of such importance? And what exactly is the significance of its validity? This topic will be broached in this article.

1. A valid RBQ licence is mandated by law

Source: Canva

The primary reason for obtaining an RBQ licence is directly associated with the legal obligation of having one. Indeed, note that the Building Act renders an RBQ-issued licence mandatory to carry out or hire out construction work on Quebec soil. 

As stated in Article 9 of the Building Act, “For the purposes of this Act, foundation, erection, renovation, repair, maintenance, alteration and demolition work is construction work.” If the work executed is meant for an owner with the intention of profiting from said work, having the required licence(s) as stated by the law is imperative.

As a contractor, you not only need to have a valid, RBQ-issued licence, but the latter must correlate with the right subclass for the type of work you plan on executing. 

2. Evidence of one's competence and quality of work

Before issuing a contractor licence, the RBQ will evaluate the applicant's competence by assessing their aptitudes in the following:

• Construction work management

• Safety management

• Administrative mangement

Besides, a licence bond must be provided as proof of the applicant’s financial solvency. 

If you’re able to prove to your clients that you have all the necessary knowledge to carry out the requested work, they will, in turn, have peace of mind while doing business with you. They will know with certainty that everything will be executed according to standard and in compliance with the Construction Code. It’s worth mentioning that the latter is all the more reassuring for your clients compared to hiring a weekend DIYer or hobbyist. 

3. Licence-covered guarantees

Source: Canva

Holding an RBQ-issued licence offers clients a financial guarantee given the licence bond the contractor is held liable under, whether they be a general or specialized contractor. 

Indeed, the majority of paying customers are reassured knowing that the work being carried out on their property is guaranteed by up to $40,000 if carried out by a general contractor, and by up to $20,000 if done by a specialized contractor. As such, clients can be compensated for damages in case of a flawed execution or defects found the year following the work completion. This very same guarantee also protects clients in the event of unfinished work as well as legal disputes regarding the payments made during the course of their home renovation project. 

Given that such a licence bond can’t be separated from your contractor licence, upon its renewal, you're essentially providing your clients with an additional guarantee.

As stated by the CESGM (Corporation des Entrepreneurs Spécialisés du Grand Montréal), it's an “incentive for consumers to hire contractors holding valid licences.”

A Mandatory Guarantee for New Residential Buildings

When it comes to clients looking to hire a contractor to build a new residence, a valid RBQ licence is proof that the to-be-built home will be protected by the Guarantee Plan for New Residential Buildings. Made mandatory since 1999, said protection measure alleviates any concerns clients may have regarding construction compliance, ensuring the structure will be built according to current industry requirements.   

When should you pay RBQ renewal fees to avoid having to reapply?

Contractor licences must be renewed every year to maintain their validity. Indeed, the licensing organization in question will send a notice of assessment 60 days before your licence is due to expire. Should you forget to pay your rights and licence fees, your licence will be invalidated automatically. You must, without fail, submit a new application to legally keep pursuing all construction-related activities.

Along the same lines, the Building Act mandates all contractors to notify the RBQ of all changes done within the realm of their company, such as a change of address or the company’s legal structure, for example. Neglecting to update your RBQ file means leaving yourself exposed to a licence suspension or cancellation.