Contractor bids
How an Alberta condo board compares contractor bids
A board comparing contractor bids is comparing more than prices. It is comparing scope, exclusions, warranties, insurance and who is accountable when something is found behind the wall. This page sets out what to check in every bid, the Alberta and City of Edmonton rules and guidance that touch a board's choice of contractor and its contract, and how CK says it collects bids trade by trade, with every bid going directly to the board.
Last reviewed . General information for condominium boards, not legal or engineering advice.
Why bids for the same work do not match
Two bids for the same job can price different things. Alberta.ca's advice to homeowners is that a written estimate should include, among other items, a complete description of the work, the type and quality of materials, the project start and completion dates, itemized costs and the total price. A bid that leaves out an item the others include is not priced on the same basis.
Until the bids are built on one written scope, the totals cannot be compared like for like. When one bid is far above or below the others, the first question is whether it prices the same scope. A bid that leaves out part of the scope is not a lower price for the same work.
Two ways to bid a condo project, as CK describes them
CK contrasts two ways of bidding a renovation. The table sets out the differences as CK describes them. The general-contractor column is CK's description of the traditional approach, not a survey of how projects are run. Which model suits a project is for the board to decide, and either way the board can ask its lawyer to review the contracts.
| General-contractor model | CK's trade-by-trade model | |
|---|---|---|
| Who is asked to bid | Traditionally, three to five general contractors are contacted or selected to bid. | Contractor companies bid on individual trades, not the entire project. |
| Where the bids go | Each general contractor puts together a bid package with all applicable pricing, including its mark-up, and submits it to the engineer. | All contractor bids and estimates go directly to the condominium corporation, and the board can review all estimates rather than a single combined bid. |
| Awarding the work | The condominium awards the job to the selected general contractor, which takes over. | Each contractor's contract is signed directly by the board. |
| On site | The general contractor sets up on site and supplies a construction manager to run all trades until the project is complete. | Once the contracts are finalized, CK sets up on site and oversees the renovation from start to finish. |
| How the work is billed | Group billing through the general contractor. | Invoicing from each vendor, who bills the condominium directly. CK says there is no additional mark-up. |
What to check in every bid
A board can put these questions to every contractor in writing, so the answers can be set side by side.
- Scope. What exactly is included, and what is excluded? Do all the bids price the same scope?
- Hidden conditions. What is the price for extra work if rot or other damage is found behind the surface, and who confirms that it is needed?
- Schedule. When will the work start and finish, and what will owners live through in the meantime?
- Warranty. What does it cover, for how long, and who holds it?
- Insurance. What cover does the contractor carry, and can it show a certificate?
- Permits. Who applies for each permit, and who pays?
- Payment. When are invoices sent and due, what must each one contain, and how is holdback handled? Alberta's Prompt Payment and Construction Lien Act sets rules on invoices, payment and holdback. The payment section below sets out some of them, and the corporation's lawyer can say how they apply to the contract.
- Experience. Recent work on similar buildings that the board can go and see.
Check the contractor before you sign
WCB-Alberta advises requesting a clearance letter before a contractor or subcontractor starts. It says the letter confirms whether they have WCB-Alberta coverage for their workers or directors and business owners and whether they are in good standing. WCB-Alberta also says to request another clearance letter before making payment, because paying a contractor or subcontractor who has an outstanding balance on their WCB account can make you responsible for the outstanding premiums.
The City of Edmonton's Business Licence Bylaw says a person must hold a valid licence to conduct business in the City, and that an approved licence does not remove obligations to obtain the proper inspections or permits, or to abide by other legislation, regulations or bylaws. Ask each contractor for its licence. The City's Project Implementation Plan Guide, which typically applies to projects that need a building permit, says the project team, which includes the property owner, the constructor and the building permit applicant or holder, is jointly responsible for ensuring compliance with Acts, regulations, codes and municipal bylaws throughout a construction project in Edmonton. It does not say whether a condominium corporation or its manager is the property owner for this purpose, so the board should know who is applying for each permit and ask the corporation's lawyer who counts as the owner.
When a director has an interest in a bid
Section 28(3) of the Condominium Property Act says a board member who has a material interest in an agreement, arrangement or transaction to which the corporation is or is to become a party must declare the interest to the board, must not vote on any matter respecting it, and is not counted when determining whether a quorum exists when a vote or other action is taken in respect of it. Section 28(4) says that rule does not apply if the interest exists only because the member owns a unit.
The Act does not define material interest, so ask the corporation's lawyer whether a bid from a director's own company, or from anyone else connected to a director, creates one. Write down the conflict process before the bids arrive, and record how the decision was made.
Who is the prime contractor?
Alberta's Occupational Health and Safety Act says every construction work site must have a prime contractor if two or more employers are involved in work at the site (section 10(1)). A construction work site includes one where the repair, alteration, extension or renovation of a structure is conducted (section 1(e)(i)). Alberta OHS says a prime contractor's main role is coordinating health and safety on a work site with two or more employers, and that a prime contractor is needed even if the employers do not work at the same time.
The person in control of a work site that must have a prime contractor must designate one in writing (section 10(2)). If that person fails to, they are deemed to be the prime contractor (section 10(3)); section 10(4) says subsections (2) and (3) do not apply to a person in control of a work site that is a private dwelling the person occupies. Alberta OHS says an owner is not necessarily the person in control of the work site. Its bulletin does not address condominium corporations, so who is in control of a condominium job is a question for the corporation's lawyer.
When a board signs several trade contracts, two or more employers may be involved at the site, so ask who will be the prime contractor and get the designation in writing before work starts. CK's own FAQ answers 'We are!' to the question 'Who is the Prime Contractor for Occupational Health and Safety (OH&S)?' That is CK's own answer, not a legal finding about any site. The answer does not say who designated CK or whether the designation is in writing.
Payment terms, holdback and liens
Alberta's Prompt Payment and Construction Lien Act sets rules about holdback, invoices, payment and liens. The table sets out some of what the Act says, as its consolidation current to 1 April 2025 states it. The Act also has transitional provisions for contracts made before its 2020 amendments, so ask the corporation's lawyer which rules govern an older contract.
Section 5(1) makes void an agreement by any person that the Act does not apply, or that the remedies the Act provides are not to be available for the person's benefit, subject to subsections (2), (3) and (4). Service Alberta's December 2025 fact sheet says that when a contract or subcontract contains an opt-out waiver from a consulting professional, the owner is no longer required to maintain statutory holdbacks under the Act. It does not say how such a waiver affects holdback under another contract on the project.
| Topic | What the Act says | Section |
|---|---|---|
| Holdback | An owner who is liable on a contract under which a lien may arise must retain, when making payment on the contract, 10% of the value of the work actually done and materials actually furnished, for 60 days from the date a certificate of substantial performance is issued or, where none is issued, from the date the contract is completed. This is the general rule; other provisions of the Act can change the period or the amount to be retained. | 18(1) |
| A proper invoice | A written bill or other request for payment for the work done or materials furnished in respect of an improvement under a contract that contains the information the subsection lists, including a statement that the invoice is intended to constitute a proper invoice, and that, subject to subsection (4), meets any other requirements specified in the contract. | 32.1(1) |
| Paying an invoice | An owner who owes money under a proper invoice must pay the amount payable under it no later than 28 days after receiving it. This is subject to the dispute rule in the next row and to any requirement to retain holdback. | 32.2(1); 32.1(2) |
| Disputing an invoice | An owner who disputes a proper invoice may refuse to pay all or any portion of the amount payable within the 28 days if, no later than 14 days after receiving it, the owner gives the contractor a notice of dispute, in the prescribed form and manner, specifying the amount of the proper invoice that is not being paid and detailing all the reasons for non-payment. The 28-day rule still applies to any amount not covered by a notice of dispute. | 32.2(2); 32.2(3) |
| Who has a lien | Subject to subsection (2), a person who does or causes to be done any work on or in respect of an improvement, or furnishes any material to be used in or in respect of an improvement, for an owner, contractor or subcontractor has, for so much of the price as remains due to the person, a lien on the estate or interest of the owner in the land in respect of which the improvement is being made. | 6(1) |
| When a registered lien ceases to exist | A lien that has been registered ceases to exist unless, within 180 days from the date it is registered, an action is commenced under the Act to realize on the lien or in which the lien may be realized, and the lien claimant registers a certificate of lis pendens in the appropriate land titles office. | 43(1) |
How CK collects and reviews bids
CK says it reviews the scope of work and contacts each appropriate contractor directly. CK says contractor companies bid on individual trades, and that all contractor bids and estimates are vetted and go directly to the condominium corporation for transparency.
CK says it asks important questions and keeps contractors accountable to the board. It also says it creates a report of its findings from the estimates, presents it to the corporation and gives recommendations on which contractors the board should hire. CK says the board can review all the estimates and that each contractor's contract is signed directly by the board.
Questions boards ask
How many bids should a condo board collect?
Service Alberta's 2026 tip sheet advises a corporation to obtain quotes for a reserve fund study as it would get quotes for any other contract, and Alberta.ca advises homeowners to get written estimates from more than one business. Neither gives a number. CK describes the traditional approach as contacting three to five general contractors, which is its description of that model, not a rule. Whatever the number, the bids need to price the same scope, or they cannot be compared like for like.
Why bid trade by trade?
CK says contractor companies bid on individual trades, not the entire project. It says all contractor bids and estimates are vetted and go directly to the condominium corporation for transparency, and that the board can review all estimates from contractors rather than a single combined bid. CK also says it keeps contractors accountable to the board.
Who signs the contract, and who holds the warranty?
CK says that in its model each contractor's contract is signed directly by the board and all warranties go directly to the condominium, not to a general contractor. What a warranty covers is set by each contract.
Does CK take a fee from the contractors it recommends?
CK says it does not. Its FAQ says the condominium corporation pays CK directly and that CK is not paid by any contractor.
What should a board ask about WCB coverage?
WCB-Alberta advises requesting a clearance letter before a contractor or subcontractor starts. It says to request another before making payment, because paying a contractor or subcontractor who has an outstanding balance on their WCB account can make you responsible for the outstanding premiums.
Can a director's company bid on the work?
Section 28(3) of the Condominium Property Act says a board member who has a material interest in an agreement, arrangement or transaction to which the corporation is or is to become a party must declare the interest to the board, must not vote on any matter respecting it and is not counted when determining whether a quorum exists when a vote or other action is taken in respect of it. Section 28(4) says that rule does not apply where the interest exists only because the member owns a unit. The Act does not define material interest, so whether a bid from a director's company creates one is a question for the corporation's lawyer.
Who is the prime contractor on a condo repair project?
Section 10(1) of Alberta's Occupational Health and Safety Act says a construction work site must have a prime contractor if two or more employers are involved in work at the site, and the Act's definition of a construction work site includes one where the repair, alteration, extension or renovation of a structure is conducted. The person in control of the work site must designate a prime contractor in writing. If that person fails to, they are deemed to be the prime contractor (section 10(2) and (3); section 10(4) makes an exception for a private dwelling the person occupies). Alberta OHS says an owner is not necessarily the person in control of the work site, and who is in control of a condominium site is a question for the corporation's lawyer.
What is a holdback?
Service Alberta's December 2025 fact sheet speaks of statutory holdbacks that an owner is required to maintain under the Prompt Payment and Construction Lien Act. Section 18(1) of the Act requires an owner who is liable on a contract under which a lien may arise to retain, when making payment on the contract, 10% of the value of the work actually done and materials actually furnished, for 60 days from the date a certificate of substantial performance is issued or, where none is issued, from the date the contract is completed. That is the general rule, and other provisions of the Act can change it. Whether and how it applies to a condominium corporation is a question for the corporation's lawyer.
Sources and further reading
Legal points on this page were checked on 30 September 2026 against the Condominium Property Act (consolidated to 14 May 2026), the Prompt Payment and Construction Lien Act (consolidated to 1 April 2025) and the Occupational Health and Safety Act (consolidated to 11 June 2025). A consolidation is not the official version, and the law changes, so check the current text.
- Condominium Property Act (Alberta King's Printer) — the statute; this page used the consolidation current to 14 May 2026
- WCB-Alberta: Coverage for contractors and subcontractors — clearance letters
- WCB-Alberta: Clearance letters
- Prompt Payment and Construction Lien Act (Alberta King's Printer) — holdback, invoices and liens; the office consolidation current to 1 April 2025
- Service Alberta: Prompt Payment and Adjudication Regulation, fall 2025 changes (fact sheet) — December 2025
- Alberta.ca: Hiring a contractor — advice written for homeowners
- Occupational Health and Safety Act (Alberta King's Printer) — section 10, prime contractors; the office consolidation current to 11 June 2025
- Alberta OHS: Prime contractor role and duties (LI018) — June 2024
- Alberta OHS: Legal terms 101, owner (LGT002) — June 2024
- City of Edmonton: Business Licence Bylaw 20002
- City of Edmonton: Project Implementation Plan Guide — July 2025
- Service Alberta: Owning a condominium (tip sheet, 2026)