Running a trade business in Alberta: certification, the PPCLA and 60-day liens

Alberta pairs a light business licensing touch with strict individual trade certification, and since 2022 it has run a modern prompt payment regime. Here is what matters in 2026.

Certification, not contractor licences

There is no general contractor licence in Alberta. Instead, compulsory certification trades, including electrician, plumber, gasfitter, refrigeration mechanic and sheet metal worker, require a certificate of qualification or registered apprenticeship for every person doing the work. Electrical permits are pulled by Master Electricians certified through the Safety Codes Council system, and municipalities administer permits through accredited agencies. The one provincial business licence to know: prepaid contracting (taking money before finishing residential work) requires a Service Alberta licence with security posted, a consumer-protection rule that catches deposit-taking renovators.

The PPCLA: Alberta's payment clock

The Prompt Payment and Construction Lien Act came into force in August 2022. A proper invoice starts a 28-day payment clock on the owner, payment must flow down each tier of the chain within 7 days, disputes can be pushed to adjudication, and invoices must be issued at least every 31 days on most contracts. Lien deadlines sit at 60 days from last work, extended to 90 days for concrete work and oil and gas well sites. The statutory holdback remains 10%. Like Ontario, the system pays contractors who invoice cleanly and on schedule.

WCB, taxes and site rules

WCB Alberta coverage is mandatory for employers, with optional personal coverage available for proprietors and partners that most commercial GCs insist on seeing. Alberta has no provincial sales tax, so 5% GST is the only tax on your invoices, one of the cleanest tax pictures in the country. OHS rules are provincial, with prime contractor duties on multi-employer sites.

The practical read

Keep certificates current for every compulsory-trade worker, invoice monthly so the PPCLA clock is always running, and calendar 60 days from last supply on every project. Alberta rewards operators who treat payment law as workflow.

FAQs for Alberta trade businesses

Which trades need certification in Alberta?

Electrician, plumber, gasfitter, refrigeration and other compulsory certification trades need a certificate or registered apprenticeship to work legally. General contracting needs no provincial licence, though prepaid residential contracting requires a Service Alberta licence with security.

What did the PPCLA change for getting paid?

Since August 2022, a proper invoice starts a 28-day payment clock on the owner, money must move down the chain within 7 days per tier, disputes can go to adjudication, and lien deadlines moved to 60 days (90 for concrete and oil and gas). Invoice discipline now directly controls your cash flow.

Is workers compensation optional for owners?

Coverage through WCB Alberta is mandatory for employers; owners and partners can buy optional personal coverage. Many commercial GCs require proof of WCB and will not let uncovered subs on site.

This guide is general information, not legal advice. Licensing thresholds, payment statutes, insurance and tax rules change; always confirm current requirements with the regulator, a lawyer or your accountant before relying on them.