Industry Code: 40405
Included in this industry are businesses engaged as general contractors* in the construction of new homes, condominiums, apartments, town homes, and other wood-frame structures intended as a personal residence and that are 5 stories or less in height.
This industry is primarily intended for new construction, however can include renovation work when general contracting characteristics and requirements are met and the renovations involve structural enhancements.
* GENERAL CONTRACTOR: The primary contractor for completion of an entire structure, including all site preparation and structural work along with all exterior and interior finishing. A general contractor will oversee and be responsible for all the work performed on the site including work by sub contractors.
Operation Details:
This industry is for general contracting operations related to residential properties of wood frame construction. This will include contractors of all sizes, from those contractors involved in multiple projects and developing entire residential communities to those contractors that will build custom homes or on speculation one at a time.
The key for inclusion in this industry is that the contractor meets the definition of 'general contractor' as noted above and is responsible directly to the project owner for all work performed.
General contractors employ architects, engineers, estimators, sales/marketing, interior decorators and administration staff. These employers normally take a project management role supervising and directing work of sub trades through on-site supervisors and foremen. They may direct hire some trades required to complete construction however contractors in this industry will generally engage the services of trade specific sub contractors for the majority of the site work.
All employers in this industry are members of the Alberta Construction Safety Association (ACSA). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
The current Alberta Building Code does not allow for wood frame construction exceeding five stories. General contracting for construction of residential properties exceeding this height (condominiums, apartment or hotel complexes) will be classified as commercial construction - Industry 40400. General contractors engaged in commercial construction projects that may have wood frame construction such as strip malls restaurants, service stations, motels are also classified in Industry 40400 – Commercial and Industrial General Contracting. Employers involved in both residential and commercial construction will have the entire business classified in the industry which represents the majority of their work.
General contractors may incorporate separate legal entities for marketing purposes including operation of show homes, etc. Such operations would be classified in this industry. Unrelated companies or individuals engaged by a general contractor to manage, supervise or inspect construction work, or for marketing purposes, who qualify for their own accounts, will also be classified in this industry.
Residential construction related to renovations of existing properties is covered in this industry when the business has the characteristics of a general contractor and the renovations include structural work that increases the square footage (additions) or change the floor plan by replacing load bearing walls with engineered structural beams designed to create an open concept.
Businesses that complete interior renovation work that does not involve structural enhancements as described and is not trade specific, are classified in industry 40401 – Construction Trade Services – NEC. Renovation work in Industry 40401 includes all types of interior renovation and upgrades including partial and complete basement developments. Businesses engaged in this type of contracting may be referred to as home renovators, home improvement or handyman services.
In this industry, the employer's primary business is focused on general contracting for new construction or structural renovation work. Where employers do work that is considered to be general contracting and they also complete non structural renovation work, the entire business will be classified in industry 40401.
Trade contractors which specialize in a specific trade service e.g. painting, drywalling, framing, cribbing, are classified in the appropriate trade category.
Construction in respect of a residence or building, other than a commercial building, by the owner for his own use is classified here when the owner is actively engaged as the general contractor. To accept coverage in these circumstances a voluntary application is required. If a homeowner requests coverage for home repairs or improvements in a specific trade only, the appropriate trade category should be assigned (Roofing - 42118, Plumbing - 42122; Electrical - 42124, etc.) If several trades are conducted, assign industry 40401 - Construction Trade Services - NEC.
When project managers or construction managers, who qualify for their own account, are engaged directly by a home owner to manage a project, without responsibility for paying subcontractors, they are classified, based on the scope of the project, in either industry 40405 or industry 40401.
Real estate or property development is exempted under the General Regulations. This exemption is restricted to employers that subdivide properties and sell individual tracts of land to commercial or residential builders for further development.
Property developers will be responsible for coordinating the construction of roads, sidewalks and installation of site services such as sewage and water lines, gas lines, etc. To be eligible for the exemption, property developers must not be involved directly in any of this work. In other words, all work must be contracted out to unrelated entities that would not be considered workers of the developer. To remain exempt, property developers must not be involved in any contracting beyond this point. Property development firms that are directly involved in further development, including development through related companies or subcontractors, are not exempted for their property development activities.
Premium Rate History:
Activities:
Apartments, Walk-up, Construction of
Buildings - Maintenance/Construction by Owner
Condominiums, Construction of 5 or Less Storeys (Wood)
Construction, General, Residential
Construction, Major Residential Renovations
Construction, Private (Non-Revenue) Buildings
Construction, Residential General Contractors
Construction, Residential, Major Renovations
General Construction - Residential Buildings
Homeowner, Construct Own Residence as General Cont.
Homes, Houses, Construction of as a General Contractor
Houses, Construction of as General Contractor
Log Cabin Construction (as General Contractor)
Townhomes, Construction of 5 Storeys or Less (Wood)
Walk-Up Apartments, Wood Construction General Contr.
Property (Non-Revenue), Maint./Constr. of by Owner
Residential Home Construction as General Contractor
Rate Group History:
This industry has been redefined, effective 2003, to include general contractors only. The trade related activity within the residential construction industry has been reassigned to trade specific categories.
Included in this industry are businesses engaged as general contractors* in the construction of new homes, condominiums, apartments, town homes, and other wood-frame structures intended as a personal residence and that are 5 stories or less in height.
This industry is primarily intended for new construction, however can include renovation work when general contracting characteristics and requirements are met and the renovations involve structural enhancements.
* GENERAL CONTRACTOR: The primary contractor for completion of an entire structure, including all site preparation and structural work along with all exterior and interior finishing. A general contractor will oversee and be responsible for all the work performed on the site including work by sub contractors.
Premium Rate History:
Activities:
Apartments, Walk-up, Construction of
Buildings - Maintenance/Construction by Owner
Condominiums, Construction of 5 or Less Storeys (Wood)
Construction, General, Residential
Construction, Major Residential Renovations
Construction, Private (Non-Revenue) Buildings
Construction, Residential General Contractors
Construction, Residential, Major Renovations
General Construction - Residential Buildings
Homeowner, Construct Own Residence as General Cont.
Homes, Houses, Construction of as a General Contractor
Houses, Construction of as General Contractor
Log Cabin Construction (as General Contractor)
Townhomes, Construction of 5 Storeys or Less (Wood)
Walk-Up Apartments, Wood Construction General Contr.
Property (Non-Revenue), Maint./Constr. of by Owner
Residential Home Construction as General Contractor
Operation Details:
This industry is for general contracting operations related to residential properties of wood frame construction. This will include contractors of all sizes, from those contractors involved in multiple projects and developing entire residential communities to those contractors that will build custom homes or on speculation one at a time.
The key for inclusion in this industry is that the contractor meets the definition of 'general contractor' as noted above and is responsible directly to the project owner for all work performed.
General contractors employ architects, engineers, estimators, sales/marketing, interior decorators and administration staff. These employers normally take a project management role supervising and directing work of sub trades through on-site supervisors and foremen. They may direct hire some trades required to complete construction however contractors in this industry will generally engage the services of trade specific sub contractors for the majority of the site work.
All employers in this industry are members of the Alberta Construction Safety Association (ACSA). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.
Underwriting Considerations:
The current Alberta Building Code does not allow for wood frame construction exceeding five stories. General contracting for construction of residential properties exceeding this height (condominiums, apartment or hotel complexes) will be classified as commercial construction - Industry 40400. General contractors engaged in commercial construction projects that may have wood frame construction such as strip malls restaurants, service stations, motels are also classified in Industry 40400 – Commercial and Industrial General Contracting. Employers involved in both residential and commercial construction will have the entire business classified in the industry which represents the majority of their work.
General contractors may incorporate separate legal entities for marketing purposes including operation of show homes, etc. Such operations would be classified in this industry. Unrelated companies or individuals engaged by a general contractor to manage, supervise or inspect construction work, or for marketing purposes, who qualify for their own accounts, will also be classified in this industry.
Residential construction related to renovations of existing properties is covered in this industry when the business has the characteristics of a general contractor and the renovations include structural work that increases the square footage (additions) or change the floor plan by replacing load bearing walls with engineered structural beams designed to create an open concept.
Businesses that complete interior renovation work that does not involve structural enhancements as described and is not trade specific, are classified in industry 40401 – Construction Trade Services – NEC. Renovation work in Industry 40401 includes all types of interior renovation and upgrades including partial and complete basement developments. Businesses engaged in this type of contracting may be referred to as home renovators, home improvement or handyman services.
In this industry, the employer's primary business is focused on general contracting for new construction or structural renovation work. Where employers do work that is considered to be general contracting and they also complete non structural renovation work, the entire business will be classified in industry 40401.
Trade contractors which specialize in a specific trade service e.g. painting, drywalling, framing, cribbing, are classified in the appropriate trade category.
Construction in respect of a residence or building, other than a commercial building, by the owner for his own use is classified here when the owner is actively engaged as the general contractor. To accept coverage in these circumstances a voluntary application is required. If a homeowner requests coverage for home repairs or improvements in a specific trade only, the appropriate trade category should be assigned (Roofing - 42118, Plumbing - 42122; Electrical - 42124, etc.) If several trades are conducted, assign industry 40401 - Construction Trade Services - NEC.
When project managers or construction managers, who qualify for their own account, are engaged directly by a home owner to manage a project, without responsibility for paying subcontractors, they are classified, based on the scope of the project, in either industry 40405 or industry 40401.
Real estate or property development is exempted under the General Regulations. This exemption is restricted to employers that subdivide properties and sell individual tracts of land to commercial or residential builders for further development.
Property developers will be responsible for coordinating the construction of roads, sidewalks and installation of site services such as sewage and water lines, gas lines, etc. To be eligible for the exemption, property developers must not be involved directly in any of this work. In other words, all work must be contracted out to unrelated entities that would not be considered workers of the developer. To remain exempt, property developers must not be involved in any contracting beyond this point. Property development firms that are directly involved in further development, including development through related companies or subcontractors, are not exempted for their property development activities.
Rate Group History:
This industry has been redefined, effective 2003, to include general contractors only. The trade related activity within the residential construction industry has been reassigned to trade specific categories.