Construction Contracts

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The Attestation de Revenu Québec is required to conclude certain construction contracts.

Contracts covered

Specifically, the Attestation is required when:

  1. a contract is signed after February 29, 2016, between a contractor and a subcontractor;
  2. the contract involves construction work done in Québec for which the person doing the work is required to hold a licence under Chapter IV of the Building Act; and
  3. point a or b below applies: 
    1. the total cost of the contract between the subcontractor and the contractor, alone or in addition to any contracts they entered into previously in the calendar year, but after February 29, 2016, reaches $25,000 (before taxes),

      Example

      From March 1 to June 30, 2016, a subcontractor and a contractor sign a series of construction contracts worth a total of $23,000 (before taxes).

      On July 8, 2016, they sign another contract worth $4,000 (before taxes).

      Since the total cost in 2016 is over $25,000 (before taxes), the cost requirement is met.

      If the other two requirements are also met, the Attestation obligations apply to the July 8 contract and any other contracts signed between the parties after that date, regardless of their cost.

    2. the total cost of construction contracts signed between the subcontractor and the contractor in a previous calendar year, but after February 29, 2016, is equal to or greater than $25,000 (before taxes), regardless of the cost of the contract.

      Example

      From March 1 to December 31, 2016, a subcontractor and a contractor sign a series of construction contracts worth a total of $27,000 (before taxes).

      On February 7, 2017, they sign another contract worth $2,000 (before taxes).

      Since the total cost in the previous year (2016) was over $25,000 (before taxes), the cost requirement is met.

      If the other two requirements are also met, the Attestation obligations apply to the February 7 contract and any other contracts signed between the parties after that date, regardless of their cost.

Exception

The obligations described on this page do not apply to a contract signed to correct an urgent situation that could endanger people or property.

Attestation validity period

The Attestation is valid until the end of the third month following the month in which it is issued. The end date of the validity period is written on the Attestation.

Obligations related to the Attestation de Revenu Québec

Obligations related to the Attestation de Revenu Québec apply to:

  • subcontractors that have an establishment in Québec and that operate businesses that do construction work requiring that the subcontractors hold a licence under Chapter IV of the Building Act;
  • the members (other than specified members) of a partnership or consortium that is a subcontractor subject to the Attestation obligations; and
  • contractors that have an establishment in Québec and that operate businesses that have construction work done, in whole or in part, requiring that the contractors hold a licence under Chapter IV of the Building Act

Note that these obligations apply to all tiers of subcontract.

Subcontractor obligations

Subcontractors have from the date of the tender for a given contract until the 7th day after the start of the work to:

  • obtain a valid Attestation de Revenu Québec; and
  • give a copy of the Attestation to the contractor along with a copy of a valid Attestation for each of their members (other than specified members), in the case of a partnership or consortium. 
Note
If a subcontractor and contractor sign a new contract before the subcontractor's Attestation expires, the subcontractor does not need to give the contractor any new copies of the Attestation.

In order to conclude new contracts once an Attestation's validity period is over, subcontractors must obtain a new Attestation.

Partnership and consortium obligations

If the subcontractor is a partnership or a consortium, each member of the partnership (other than a specified member) or consortium must hold a valid Attestation de Revenu Québec from the date of the tender for a given contract to the 7th day after the start of the work.

In order for the subcontractor to conclude new contracts once an Attestation's validity period is over, every member (other than a specified member) of the partnership or consortium must obtain a new Attestation.

See How to Request an Attestation de Revenu Québec for everything you need to know about requesting an Attestation.

Contractor obligations

For a given contract, a contractor has from the date of the tender for a given contract until the 7th day after the start of the work to:

  • obtain a copy of the subcontractor's Attestation along with a copy of a valid Attestation for each of its members (other than specified members), if the subcontractor is a partnership or consortium; and
  • ensure the validity of every Attestation it receives.

The contractor then has until the tenth day after the start of the work to verify the authenticity of every Attestation it receives.

Note
If a subcontractor and contractor sign a new contract before the subcontractor's Attestation expires, the contractor does not need to obtain any new copies of the Attestation, ensure the validity of the original Attestation or verify its authenticity again.

Ensuring the validity of an Attestation

To ensure that an Attestation is valid, contractors must check that the following requirements are met:

  • the name and address on the Attestation match those of the business with which the contractors wish to enter into a contract; and
  • the validity period shown on the Attestation has not expired.

Verifying the authenticity of an Attestation

To learn more about verifying the authenticity of an Attestation obtained from a subcontractor, click Mandatory Verification of an Attestation de Revenu Québec.

Penalties

Penalties may apply to subcontractors and contractors that do not meet their obligations.

If the subcontractor is a partnership or consortium, penalties may also apply to its members (other than specified members)

Penalties (subcontractors)
Situations Penalties

From the date of the tender for a given contract until the 7th day after the start of the work, a subcontractor fails to:

  • obtain a valid Attestation de Revenu Québec; or
  • give a copy of the Attestation to the contractor. 

The subcontractor is liable to a penalty equal to the highest of the following amounts:

  • $500;
  • 1% of the value of the contract, up to $2,500;
  • $2,500 when the value of the contract cannot be determined.
Additional penalty

If a subcontractor receives an amount related to the contract, but has not yet corrected the situation, the subcontractor is liable to an additional penalty equal to the highest of the following amounts:

  • $250;
  • 2% of the amount received, when the value of the contract is less than $100,000 (up to $2,000);
  • 5% of the amount received, when the value of the contract is greater than or equal to $100,000 or when the value of the contract cannot be determined (up to $5,000).

From the date of the tender for a given contract until the 7th day after the start of the work, a subcontractor that is:

  • a partnership fails to give the contractor a copy of the valid Attestation de Revenu Québec of each of its members (other than specified members);
  • a consortium fails to give the contractor a copy of the valid Attestation de Revenu Québec of each of its members.

For each copy of the Attestation that the subcontractor failed to give to the contractor, the subcontractor that is a partnership or a consortium is liable to a penalty equal to the highest of the following amounts:

  • $500;
  • 1% of the value of the contract, up to $2,500;
  • $2,500 when the value of the contract cannot be determined.
Additional penalty

If, as a partnership or a consortium, a subcontractor receives an amount related to the contract, but has not yet corrected the situation, the subcontractor is liable to an additional penalty for each copy of the Attestation that the subcontractor failed to provide, equal to the highest of the following amounts:

  • $250;
  • 2% of the amount received, when the value of the contract is less than $100,000 (up to $2,000);
  • 5% of the amount received, when the value of the contract is greater than or equal to $100,000 or when the value of the contract cannot be determined (up to $5,000).
During the three years following the mailing date of the notice of assessment showing a penalty respecting the Attestation de Revenu Québec, an enterprise acting as a subcontractor again fails to meet an obligation related to the Attestation.

The enterprise acting as a subcontractor is liable to a penalty equal to double the amount of the penalty applied for the previous failure.

For example, if the amount of the initial penalty was $500, the amount of the subsequent penalty will be $1,000.

Note

This penalty is applicable regardless of whether the enterprise was acting as a subcontractor or contractor, or as a member of a partnership or a consortium at the time of the failure.

Penalties (members of a partnership or consortium)
Situations Penalties

The subcontractor is a partnership or a consortium and, from the date of the tender for a given contract until the 7th day after the start of the work, one or more members of the partnership (other than specified members) or of the consortium do not hold a valid Attestation de Revenu Québec.

Each member of the partnership (other than specified members) or the consortium that does not hold a valid Attestation de Revenu Québec is liable to a penalty equal to the highest of the following amounts:

  • $500;
  • 1% of the value of the contract, up to $2,500;
  • $2,500 when the value of the contract cannot be determined.
Additional penalty

If the subcontractor receives an amount related to the contract, but one or more of the members do not hold a valid Attestation de Revenu Québec, each member is liable to an additional penalty equal to the highest of the following amounts:

  • $250;
  • 2% of the amount received, when the value of the contract is less than $100,000 (up to $2,000);
  • 5% of the amount received, when the value of the contract is greater than or equal to $100,000 or when the value of the contract cannot be determined (up to $5,000).

During the three years following the mailing date of the notice of assessment showing a penalty respecting the Attestation de Revenu Québec, a person or an enterprise acting as a member of a partnership (other a specified member) or a consortium again fails to meet an obligation related to the Attestation.

The person or enterprise acting as a member of a partnership (other than a specified member) or a consortium is liable to a penalty equal to double the amount of the penalty applied for the previous failure.

For example, if the amount of the initial penalty was $500, the amount of the subsequent penalty will be $1,000.

Note

This penalty is applicable regardless of whether the person or enterprise was acting as a subcontractor, a contractor or a member of a partnership or a consortium at the time of the failure.

Penalties (contractors)
Situations Penalties

From the date of the tender for a given contract until the 7th day after the start of the work, a contractor fails to:

  • obtain a copy of the subcontractor's valid Attestation de Revenu Québec; or
  • validate the subcontractor's Attestation.

The contractor is liable to a penalty equal to the highest of the following amounts:

  • $500;
  • 1% of the value of the contract, up to $2,500;
  • $2,500 when the value of the contract cannot be determined.
Additional penalty

If the contractor pays an amount related to the contract, but has not yet corrected the situation, the contractor is liable to an additional penalty equal to the highest of the following amounts:

  • $250;
  • 2% of the amount paid, when the value of the contract is less than $100,000 (up to $2,000);
  • 5% of the amount paid, when the value of the contract is greater than or equal to $100,000 or when the value of the contract cannot be determined (up to $5,000).

From the date of the tender for a given contract until the 7th day after the start of the work:

  • a contractor working with a subcontractor that is a partnership fails to:
    • obtain from the subcontractor a copy of the valid Attestation de Revenu Québec of each of the partnership's members (other than specified members), or
    • validate the Attestation of each member;
  • a contractor working with a subcontractor that is a consortium fails to:
    • obtain from the subcontractor a copy of the valid Attestation de Revenu Québec of each of the partnership's members, or
    • validate the Attestation of each member.

For each copy of an Attestation not obtained or validated, the contractor is liable to a penalty equal to the highest of the following amounts:

  • $500;
  • 1% of the value of the contract, up to $2,500;
  • $2,500 when the value of the contract cannot be determined.
Additional penalty

If the contractor pays an amount related to the contract, but has not yet corrected the situation, the contractor is liable to an additional penalty equal to the highest of the following amounts:

  • $250;
  • 2% of the amount paid, when the value of the contract is less than $100,000 (up to $2,000);
  • 5% of the amount paid, when the value of the contract is greater than or equal to $100,000 or when the value of the contract cannot be determined (up to $5,000).

By the tenth day following the start of work, a contractor fails to validate the subcontractor's Attestation de Revenu Québec.

The contractor is liable to a penalty equal to the highest of the following amounts:

  • $250;
  • 0.5% of the value of the contract (up to $1,250).

By the tenth day following the start of work:

  • a contractor working with a subcontractor that is a partnership fails to validate the Attestation de Revenu Québec of each of the partnership's members (other than specified members); or
  • a contractor working with a subcontractor that is a consortium fails to validate the Attestation of each of the consortium's members.

For each unvalidated Attestation, the contractor is liable to a penalty equal to the highest of the following amounts:

  • $250;
  • 0.5% of the value of the contract (up to $1,250).

During the three years following the mailing date of the notice of assessment carrying a penalty respecting the Attestation de Revenu Québec, an enterprise acting as a contractor again fails to meet an obligation related to the Attestation.

The enterprise acting as a contractor is liable to a penalty equal to double the amount of the penalty applied for the previous failure.

For example, if the amount of the initial penalty was $500, the amount of the subsequent penalty will be $1,000.

Note

This penalty is applicable regardless of whether the enterprise was acting as a subcontractor or contractor, or as a member of a partnership or a consortium at the time of the failure to comply.

Important

A notice from the Minister will be sent by registered mail to a person or enterprise that, as a contractor, subcontractor or a member of a partnership or a consortium, failed to meet an  obligation related to the Attestation de Revenu Québec. Once the notice has been received, this person or enterprise is liable to penalties if the failure continues, regardless of whether the person or enterprise is a contractor or subcontractor, or a member of a partnership or consortium.

For more information about the penalties, see the Taxation Act.

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