RBQ License

It is not always easy to understand how license subclasses work, that is why we take the time to explain it to all our customers.

To try making a simple explanation, the specialized contractor’s license is covered by the subclasses of Schedule III.

As a general rule, the subclasses of Schedule II will be additions for both the specialized contractor and general contractor license application.  Except for subclasses 2.6, 3.1, 4.1, 5.1 and 6.1, that are included in the general contractor’s license according to the subclass chosen in Schedule I.

For example:  An application for a general contractor license 1.1.1 (New houses) which includes the subclass 6.1 Framing … the contractor will be entitled to perform framing work only for new houses but not under renovation.

Note that all licenses operate on the principle that it is possible to subcontract and execute work that is included in the subclasses of the license only.  Exclusively the general contractor has the right to subcontract the subclasses of Schedule II  which are not part of the license.

The general contractor license is covered by the subclasses of Schedule I.  For this Schedule, the general contractor will have the obligation to take exams for each required subclass of Schedule I.

For example:  He will be needing subclass 1.1.1 for new house contracts, 1.1.2 for new condos and 1.3 for flips or renovations.

A guarantor is either a shareholder, a director, or an employee of an incorporated company in order to be able to take the RBQ exams and act as a guarantor for the chosen fields.

When we have a corporation company, it is quite possible to have as many guarantors as desired for each qualification area, if the candidates meet the requirements.

The area of ​​qualification taken in charge by a guarantor incurs certain responsibilities that should not be taken lightly.

The guarantor, after having qualified with RBQ, will have his areas of qualification activated and may act as a guarantor as long as he is associated with an active license.  As soon as the license will no longer be active, the qualifications will remain on standby for 5 years before needing to be requalified.

For the business as a natural person (self-employed), there is no other option than the one that it is the natural person himself who needs to qualify for the exams and become the guarantor.

NOTE that the license is never given to an individual. It is given to a company.

NOTE that an analysis of a guarantor’s bankruptcy or criminal record must be done before submitting a license application since certain restrictions could result in a guarantor not being accepted.  If so, that person will not be able to appear in any of the corporation documents.

Processing times in a license application process vary widely.  As soon as we start with a new client, we keep them informed of current situations with the RBQ.

Now you know that to offer services in the field of construction in Quebec and that even small renovation works in residential sector are part of it, a license from the RBQ is mandatory.  The fines incurred for carrying out construction work without an RBQ license vary, so for a natural person business the fine is $ 12,000 and more and for a legal person company the fine is $ 33,000 and more.

It would be wise to always check if a license is required for your situation.

Competency cards are very often grounds for misunderstanding. In order to separate the information, first of all you now know that construction work in Quebec requires an RBQ license, but you should also know that if the contracts obtained target the new residential, commercial, and industrial sectors, competency cards must be held by each person executing the work and for each trade referred to in the contract.

Competency cards are not obtained in the same way as RBQ licenses.

To complete your questioning, we invite you to consult our Blogs on the subject.

An RBQ license is given to a company that holds an NEQ (Quebec company number).  If the NEQ is canceled, amended, or expunged, the license will also be canceled.  It is therefore important to know that if you decide to change your business status from natural person to legal person … the NEQ will be changed, so you will have to reapply for a license (without exams) and pay the required fees.

It is the same if you decide to transfer your license to a new company … there will be a change of NEQ, so a new license application will be required.

It is only business mergers that leave room for modification without having to reapply for a license.

For bankruptcies, it is obvious that if a bankruptcy situation arises for a natural person, the business will lose its license since the natural person and the company are one.  The same applies to the corporation, if the company goes bankrupt it will also lose its license.  But if it is a guarantor or a shareholder of the corporation that is in personal bankruptcy, there is a way to replace these people without affecting the license.