Contractor bids and contracts: how many bids, what to put in writing and who to check

The sources read for this page, including the Condominium Property Act and Regulation, contain no rule that requires a condominium corporation to tender work or to get a set number of bids. The tendering procedures in the sources read are those of public bodies, and they are not rules for condominium corporations.

Service Alberta's March 2026 'Owning a Condominium' publication lists hiring and supervising employees and contractors among the board's responsibilities but does not set a hiring or bidding procedure. Alberta Infrastructure says a tender notice is publicly advertised for its construction procurements of $100,000 or greater. The City of Edmonton's Procurement Standard, approved in July 2024, says the City prefers a competitive process for construction procurements of $200k and over.

Next step. Check your bylaws for any spending or bidding rule, and ask the corporation's lawyer if you are unsure.

Sources: Owning a Condominium, Condominium Property Act, Vendor opportunities | Alberta.ca, City of Edmonton Procurement Standard

Alberta.ca's 'Hiring a contractor' page, written for homeowners, says to get written estimates from more than one business. It does not use the word 'bid' and gives no number beyond that.

CK says that in a traditional renovation three to five general contractors are contacted. That is CK's description of the traditional model, not a survey of how projects are run.

Next step. Agree the number before asking for bids, and see contractor bids for what to check in each one.

Sources: Hiring a contractor | Alberta.ca, CK Condominium FAQ page

The sources read for this page contain no rule that requires a condominium corporation to accept the lowest bid. Section 28(2) of the Condominium Property Act requires every board member to act honestly and in good faith in the corporation's best interests and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. That is a standard of conduct, and the section does not mention bids.

The City of Edmonton's Tendering page says its own tenders are evaluated completely or largely on price. The City's manual for community groups says that, for projects built with public funds, bids are awarded on the criteria indicated. Its examples include a lowest bid, where price is the deciding factor, and criteria beyond price, where the bidder's history, reputation and record are also used to decide who wins. Neither is written for condominium corporations.

Next step. Write the award criteria down before the bids are opened, and ask the corporation's lawyer how the board members' duty applies to the choice.

Sources: Condominium Property Act, Tendering | City of Edmonton, Community-Led Projects Manual

Yes, the 2003 manual of the Canada Mortgage and Housing Corporation (CMHC) for co-operative and non-profit housing providers does. Among its purchasing criteria, it recommends competitive prices from three sources, through quotations, tenders or proposals, for replacement costs above $5,000 and under $30,000. For costs of $100,000 or more it recommends public tender for construction work in all cases or competitive bids from at least six sources.

This is a recommendation, not law, and it does not apply by its terms to Alberta condominium corporations. Its dollar amounts date from 2003. It also has a tier for costs from $30,000 to $100,000 and further notes, which this answer does not reproduce.

Next step. Treat it as a point of comparison, not a rule, and record why the board chose the number of bids it did.

Sources: Capital Replacement Planning

The City of Edmonton's manual for community groups says tendering is the process commonly used in the construction industry to seek competitive bids for the goods and services needed to build a project. A tender can go to all potential bidders, to all firms that indicate an interest in bidding, or to a limited list of preferred bidders, also called an invitation to bid.

That manual is written for non-profit community groups, not condominium corporations. The City's own Tendering page, about how the City buys for itself, says bids in its tender process must meet mandatory requirements and are then evaluated completely or largely on price.

Next step. Ask any adviser running a tender to say in writing who will be invited to bid and how the winner will be chosen.

Sources: Community-Led Projects Manual, Tendering | City of Edmonton

Service Alberta's October 2022 fact sheet on home improvements advises giving each business a detailed description of the work wanted and the materials the contractor is to use. It is consumer advice for homeowners, not a rule for condominium corporations.

CK says that in a larger traditional renovation an engineer is contacted and a 'spec and scope' is produced before general contractors are selected to bid. CK says it reviews the scope of work and contacts each appropriate contractor directly.

Next step. Write the scope down before contacting anyone, and keep a record of what each contractor received.

Sources: Home Improvements, CK Condominium FAQ page

Alberta.ca's 'Hiring a contractor' page, written for homeowners, says a written estimate should include a complete description of the work and the type and quality of materials. It should also show the project start and completion dates, itemized costs and the total price, and the required method of payment, among other items.

The same page lists, among contractors to avoid, those who quote a price without seeing a job. It is advice, not a legal standard. It does not distinguish estimates from bids, and it does not address condominium corporations.

Next step. Ask each contractor to set out its bid under these headings, so the board can compare them side by side.

Sources: Hiring a contractor | Alberta.ca

Section 28(3) of the Condominium Property Act does not say it is prohibited for the corporation to enter into an agreement in which a board member has a material interest. It says that member must declare the interest to the board, must not vote on any matter about the agreement and is not counted for the quorum.

The Act does not define 'material interest'. Whether a board member's link to a bidding company counts is a question for the corporation's lawyer.

Next step. Ask every board member to declare any link to a bidder before the bids are opened, and see board duties for the full answer.

Sources: Condominium Property Act

Yes: WCB-Alberta says you should get a clearance before you hire a contractor and before releasing payment. It adds that if you do not have a clearance letter and the contractor has not paid their premiums, you may be liable for those premiums.

Next step. Ask each contractor for a clearance letter before hiring it, and see running a construction project for what a letter confirms and what the Workers' Compensation Act says.

Sources: Clearance letters

Alberta.ca's 'Hiring a contractor' page, written for homeowners, advises asking to see an insurance certificate showing public liability and property damage coverage for all workers on the job. The page does not mention minimum insurance limits.

The City of Edmonton's manual for community groups says the group should verify, before signing, that the contractor has general liability insurance and course of construction insurance. The first protects the group from liability for property damage or bodily injury during construction. The second covers the cost of property loss or damage during construction. The manual is not written for condominium corporations.

Next step. Ask each bidder to provide its insurance certificate with the bid, so it can be checked before the contract is signed.

Sources: Hiring a contractor | Alberta.ca, Community-Led Projects Manual

Edmonton's Business Licence Bylaw (consolidated on 2 July 2025) says in section 4(1) that a person must hold a valid licence to conduct Business in the City. The City's categories page lists residential and commercial contractors among the typical examples in its 'Construction, Contracting, and Labour Service' category.

The sources read for this page do not say how a board can check a licence. The City's open data catalogue describes a list of businesses with a valid licence, but it does not say that a business missing from the list is unlicensed.

Next step. Ask each contractor to show its current licence, and see permits, codes and safety for how a licence differs from permits and inspections.

Sources: City of Edmonton Bylaw 20002, Business Licence Categories | City of Edmonton, City of Edmonton

Alberta.ca says to always insist on a written contract. Its 'Hiring a contractor' page, written for homeowners, says verbal contracts are hard to prove. It is advice, not a statutory rule.

The page's renovation contract checklist includes a statement of who is responsible for getting all necessary permits and ensuring that inspections and approvals by local authorities are done at the proper times. A December 2025 Service Alberta fact sheet on the Prompt Payment and Adjudication Regulation says responsibility for managing contracts rests entirely with the contracting parties, including defining roles and timelines. The fact sheet does not mention condominium corporations.

Next step. Ask the contractor to state in writing who will get each permit, and see payment, holdback and liens for payment questions.

Sources: Hiring a contractor | Alberta.ca, Prompt Payment and Adjudication Regulation

The City of Edmonton's manual for community groups says the group should have a lawyer review all contracts it signs for the project. That is guidance for a City program, and the manual is written for non-profit community groups, not condominium corporations.

Next step. Send the draft contract and the bids to the corporation's lawyer before the board votes to sign.

Sources: Community-Led Projects Manual

Alberta.ca treats it as something to consider. Its 'Hiring a contractor' page, written for homeowners, says that if a renovation involves a substantial amount of money, the homeowner may want to consider additional protection such as a performance bond in case the contractor fails to complete the work.

A City of Edmonton sheet for community groups says a performance bond protects the project owner from financial losses if the contractor becomes financially unable to complete the project. It gives bond amounts as a share of the contract sum. The City's manual for community groups says the group should verify, before signing, that the contractor has a surety bond, which it says provides the financial resources to complete the project if the contractor becomes financially incapable of finishing it as agreed. Neither is written for condominium corporations.

Next step. Ask the corporation's lawyer whether a bond suits the project and how much cover to ask for.

Sources: Hiring a contractor | Alberta.ca, Community-Led Projects Manual, Surety Bonds

Alberta.ca's home renovation contract checklist, written for homeowners, lists a statement of all warranties explaining what is covered, for how long and what will be done if there are problems. It is advice for homeowners and does not create a statutory warranty.

CK says that in its model all warranties go directly to the condominium, not to a general contractor.

Next step. Ask each bidder to put its warranty in writing: what is covered, for how long and what it will do if there are problems. See running a construction project for typical warranty periods.

Sources: Hiring a contractor | Alberta.ca, CK Condominium FAQ page

For repair work on an existing building, the sources read for this page name only one route: a 'reconstruction' under the New Home Buyer Protection Act. The Act's General Regulation prescribes as a reconstruction a building where, after a change, alteration or repair, at least 75% of the enclosed square footage above the foundation is new when the work is complete.

The Act's definition of a new home covers a residential building newly constructed or being constructed and still within its protection period. It also includes a condominium corporation's common property, common facilities and other assets, and a building intended for residential occupancy that is a reconstruction. The Regulation says a change, addition, alteration or repair to a building's surfaces, fixtures or decorations is not a reconstruction, but does not list what counts as a surface. The 75% test measures square footage, not cost.

Next step. Before assuming any statutory warranty applies, ask the corporation's lawyer whether the project would count as a reconstruction.

Sources: New Home Buyer Protection Act, New Home Buyer Protection