Regulations Specific to the Construction Industry

Contractors in the construction industry must observe regulations currently in force, including the obligations given below.

A contractor that concludes a contract for construction work for $25,000 or more with a body subject to section 4 or section 7 of the Act respecting contracting by public bodies (hereinafter called "body") and that concludes a construction work contract for $25,000 or more with a subcontractor must obtain from the subcontractor an Attestation de Revenu Québec (certificate from Revenu Québec) that respects the validity period defined below.

Note that since January 1, 2012, this rule also applies to all businesses that wish to conclude a construction contract with a municipal body.

Validity period for the construction industry

In the case of a public call for tenders or an invitation to bid, the subcontractor’s certificate must not have been issued: 

• more than 90 days before the deadline for receiving bids for the contract between the contractor and the body
• after the end date of the subcontract

In the case of a contract concluded by mutual agreement between a contractor and a body, the subcontractor’s certificate must not have been issued more than 90 days before the conclusion of the subcontract.

In addition, before the construction work involving subcontractors begins, the contractor must provide the body with the following information:

• the name and address of the subcontractor
• the amount of the subcontract and its end date
• the number and the issue date of the subcontractor’s certificate

Note that this information must be updated if the contractor concludes a contract with a new subcontractor after the construction work has begun.

Penalties

If you fail to comply with the regulations, you are liable to penalties and you may have to pay a fine ranging from $500 to $5,000, for a first offence. This is the case if, for example:

• as a contractor
  • you do not obtain from the subcontractor the required certificate and you do not respect the validity period defined above
  • you do not provide the body with the information mentioned above
• as a subcontractor, you do not hold a certificate as required by the regulations

In the case of a subsequent offence, the minimum and maximum fines will be doubled. Businesses that commit multiple offences could, in certain situations, lose their eligibility for public contracts.

Note that warnings, rather than fines, will be issued to those who commit offences pertaining to:

• the period from September 15, 2011, to March 15, 2012, where the contract is concluded with a body subject to section 4 or section 7 of the Act respecting contracting by public bodies
• the period from January 1, 2012, to June 30, 2012, where the contract is concluded with a municipal body