Quick approach: verify the checks that actually apply to the trade and location, compare the written scope, and keep important responsibilities in the contract rather than relying on assumptions.
What a WCB clearance letter does
WCB Alberta’s online clearance service describes a clearance as a letter confirming whether an account is in good standing and clearing a third party from liability for that account’s premiums. Labour clearances are the common type used when contractors or subcontractors are hired.
Why the hiring party is named
Alberta’s WCB guidance says clearance letters are addressed to a specific individual or company because the letter clears that specific principal from liability. A contractor therefore cannot simply hand every customer one generic clearance addressed to nobody.
When the account is not in good standing
WCB lists reasons a clearance can be denied, including unpaid premiums, a long-closed account or missing information needed to determine coverage. Its guidance says a hiring party can hold back an appropriate amount in certain circumstances until clearance is received, but WCB should be contacted to determine the amount.
Clearance is not a quality guarantee
A WCB clearance is about workers’ compensation account status. It does not tell you whether the contractor’s quote is complete, whether a permit is required, whether a specific trade licence applies or whether the workmanship will meet your expectations. Keep those checks separate.
What to keep in the project file
Keep the clearance letter with the accepted quote, contract, invoices, permit records and insurance information. If the project runs for a long period, verify whether a new clearance is needed rather than assuming the first letter covers every future date.
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Official sources and further reading
Rules and account status can change. Check the current official source for your province, territory and municipality before relying on a requirement for a live project.