WHAT THE LICENCE BOND IS FOR AND HOW IT WORKS
Under Article 84 of the Loi sur le bâtiment, the contractor's licence bond exists to indemnify clients who suffer prejudice arising from the non-performance or execution of construction work.
In this claim, the homeowner sought recourse under that bond. The RBQ transmitted the claim file to the surety, Intact Assurance, and sought its consent to conclude an agreement or transaction.
The surety refused — twice. After further observations and evidence were submitted, the file was reconsidered by the surety. It maintained its refusal to conclude an agreement with the homeowner.
The published decision confirms that without a final judgment, the ability of the claim to proceed depended entirely on the surety's consent. The Bureau stated it had no other choice but to refuse to proceed with the claim.
The claim therefore reached the bond system. What happened once it did is documented in the decision.
WHAT THE RECORD SHOWS IN PRACTICE
The homeowner submitted a claim under the licence bond.
An engineering report was provided.
Additional physical evidence was later submitted during revision.
The surety was given a further opportunity to reconsider. It maintained its refusal.
The Bureau concluded that it could not determine whether the claim was well founded or establish its value.
The documentary evidence developed. The claim still did not proceed to a determination on its merits.
WHO THE SYSTEM COSTS
The RBQ licence bond is not a voluntary arrangement. Licensed contractors in Quebec are required by law to post a surety bond as a condition of obtaining and maintaining their licence. For many small renovation contractors, this represents a significant and ongoing regulatory cost.
A contractor who performs competent work, completes jobs without dispute, and never has a valid claim filed against them nonetheless pays into this system throughout the life of their licence.
The published decision in this case documents what happens on the consumer side when that bond is called upon: engineering evidence of a construction defect was submitted, the surety refused to consent to an agreement, and the RBQ concluded it had no authority to proceed without a civil court judgment.
The contractor pays a mandatory cost. The consumer bears the burden of civil court. The surety decides whether the bond activates.
WHAT THE RECORD DOES NOT RESOLVE
The bond process produced no compensation in this case. Civil court remained the only available remedy — at the homeowner's expense and with no guaranteed outcome.
A civil judgment does not guarantee recovery. A contractor unable to satisfy a judgment may cease operations and re-enter the market under a new licence.
The GCR new home warranty program provides more direct consumer protection for new construction. It does not apply to renovation work. Renovation clients in Quebec have no equivalent program.
The RBQ cannot order a contractor to return and correct defective work. That power belongs exclusively to civil courts.
THE QUESTION RAISED BY THE PROCESS
A licence bond is intended to provide financial protection to clients who suffer prejudice arising from construction work.
Yet the published decision records a process in which, absent a final judgment, the RBQ sought the surety's consent before the claim could proceed through an agreement or transaction.
The surety, Intact Assurance, refused.
The RBQ then refused to proceed with the claim.
CONTINUE TO THE EVIDENCE →