Before You Pay a Deposit to a Contractor

In Alberta, one of the biggest risks in home renovations isn’t just shoddy work – it’s paying money up front to the wrong contractor. A lot of door‑knockers and smaller operators ask for deposits or “progress payments” before any work is done, and if they disappear, your money goes with them.

A simple licence check can dramatically reduce that risk.

Below are three practical steps you can take before you say “yes” or pay a deposit – plus how buy better® can do this work with you.

1. Understand the “prepaid contractor” rule

If a business in Alberta asks for money before the work is complete – a deposit or progress payment – they are legally required to hold a Prepaid Contracting Licence from the province. That licence means they’ve posted security with the government, which gives you a limited safety net if they take your money and vanish.​

Many contractors still ask for deposits without holding this licence, which means your money is exposed if something goes wrong.

2. Always check the licence before you pay

Before you hand over a cheque or e‑transfer, take a couple of minutes to check whether the contractor is properly licensed.​

• Use the provincial “Find if a Business is Licenced” search to look up the business name.​

• Make sure the legal name on the quote matches what you search for, not just a first name or a generic trading name.​

• If they’re asking for money up front and you can’t find them as a prepaid contractor, your deposit is high risk.​

If they aren’t licensed, don’t pay a deposit; ask why they’re requesting money in advance when they’re not on the prepaid list.

3. Treat missing licences as a red flag

There are legitimate contractors who work on a “pay on completion” basis and don’t need this specific licence. The risk shows up when someone is:​

• Pushing for a deposit or partial payment before work starts.

• Not on the prepaid contractor list.

• Reluctant to give you a clear legal business name and contact details.​

That combination should trigger a pause, a second opinion, or walking away altogether.

Where buy better® fits

You can do these checks yourself, but SafeGuard and SafeSource are built to handle exactly these situations with you.

• SafeGuard: If someone is at your door, on the phone, or in your inbox pushing for a deposit and you’re not sure what to do, a SafeGuard advocate can talk it through with you in real time, check the licence status, and help you decide whether to proceed or walk away.

• SafeSource: If you know you’ll need to pay deposits on a bigger project (windows, kitchens, flooring), SafeSource can help you shortlist properly licensed contractors from the start so you’re not relying on whoever knocks first.

Want help before you pay?

If you’re in Calgary and a contractor is asking for a deposit or progress payment – especially if it’s a door‑knock or flyer offer – you don’t have to decide alone.

Email sarah@webuybetter.com with the contractor’s name and a photo or copy of the quote, or text/call 587‑227‑0033, and you’ll get details on current SafeGuard and SafeSource support options before you hand over money.