Everything You Need to Know as a Residential Builder in BC

Residential building is a crucial part of British Columbia’s growing real estate market, with plenty of opportunities for those interested in constructing new homes, renovating existing ones, or overseeing construction projects. However, building in BC is a regulated profession, with specific licensing requirements overseen by BC Housing. This guide explains who needs a residential builder licence, the types of licences available, how to obtain each, and the continuing professional development (CPD) requirements for general contractors.

Who Needs to Apply for a Residential Builder’s Licence?

In BC, anyone who wants to operate as a residential builder or supervise the construction, repair, or renovation of homes generally needs a licence. This includes anyone working as a general contractor, developer, or building envelope renovator. According to BC Housing, even experienced builders who previously held a licence must reapply under certain conditions. These include:

• Licence Closure, Expiration, or Cancellation: Builders who held licences in the past but have had them closed, expired, or cancelled must reapply.
• Licence Violations: Builders who violated a condition of their licence within the last five years need to go through the licensing process again.
• Existing Builders Expanding Roles: Current builders in good standing but wishing to qualify for general contractor status must meet specific qualifications.

Some builders are exempt from the requirements, such as licensed developers building under Part 3 of the BC Building Code who contract out to a general contractor for specific projects, or licensed building envelope renovators focused exclusively on this area.

Types of Residential Builder Licences: General Contractor, Developer, and Building Envelope Renovator

There are three main categories of licences available for residential builders in British Columbia, each allowing for specific roles and responsibilities in residential construction.

1. General Contractor

A general contractor licence allows the licensee to manage and oversee residential construction projects under Part 9 of the BC Building Code, which covers houses and small buildings. General contractors are responsible for everything from managing subcontractors and adhering to building codes to ensuring the project remains within budget and follows safety regulations. This role suits individuals looking to take full ownership of building homes and smaller residential structures.

2. Developer

Licensed developers, unlike general contractors, do not directly handle the construction. Instead, they focus on the larger scope of planning, financing, and coordinating the development of residential housing projects. Developers may work on larger buildings regulated under Part 3 of the BC Building Code, like apartments and condominiums, or under Part 9 for smaller structures. However, they typically hire licensed general contractors to handle the actual construction work.

3. Building Envelope Renovator

A building envelope renovator specializes in renovations that improve the durability and energy efficiency of a building’s external structure. This role requires an understanding of building science, and the materials and techniques involved in constructing weather-resistant buildings. Building envelope renovators focus on reducing moisture intrusion and managing other external environmental factors. They don’t engage in new home construction but rather repair or upgrade existing structures.

How to Obtain a Residential Builder’s Licence in Each Category

Each licence category has unique requirements, from education and experience to examinations. Here’s a look at what’s needed for each:

General Contractor Licence Requirements

For those interested in becoming licensed as a general contractor, the following criteria apply:

1. Experience: General contractor applicants must demonstrate 24 months of experience managing or supervising residential construction projects. This experience must be recent, having been obtained within the last five years.
2. Core Competencies: Applicants need to prove competency in seven core areas:
   • Relevant enactments
   • Construction management and supervision
   • Construction technology
   • Customer service and home warranty insurance
   • Financial planning and budget management
   • Legal issues
   • Business planning, management, and administration
3. Proof of Training: Acceptable training for these competencies can be found on BC Housing’s Education Registry. Applicants must pass a proctored exam and submit completion certificates to show they’ve passed each competency.

Alternatively, an applicant can apply to use a nominee who meets these competency requirements on their behalf. The nominee must be a key person in the business, such as a senior manager, but cannot simply be a contractor working for the company.

Developer Licence Requirements

Developers do not need to meet the same competency requirements as general contractors, as they typically hire contractors for the actual construction. Instead, developers focus on project planning and coordinating the construction process with licenced contractors.

To obtain a developer licence:

• Business Planning and Administration: Developers need to provide documentation showing their ability to manage large projects and their knowledge of legal, financial, and construction management principles.
• Experience Verification: Developers should have experience in project management or a related field, with evidence of their role in past or ongoing projects.

Building Envelope Renovator Licence Requirements

Building envelope renovators must show expertise in weatherproofing and environmental sustainability. This specialized licence requires:

• Experience in Envelope Renovation: Applicants must demonstrate experience specific to building envelope renovations rather than general construction.
• Specialized Training: Training related to building science and environmental factors affecting construction durability is essential, along with an understanding of current best practices in moisture control.

CPD Requirements for General Contractors

To maintain a general contractor licence, BC Housing requires continuing professional development (CPD). Licensed contractors must earn a minimum of 40 CPD points each year to stay licensed. Over half of these points must relate to one of four critical areas:

• Construction management
• BC Building Code
• Customer service and home warranty insurance
• Construction technology

Regulatory Oversight and Resources

For those starting their journey, BC Housing’s Choose Your Licence Type bulletin outlines the requirements for each licence type, while the Education Registry provides an up-to-date list of approved training courses for general contractors. A key option for this training is Ashton College's BC Building Code 2024 Course, which equips participants with in-depth knowledge of the latest regulations governing construction, renovations, and safety standards in BC. This comprehensive 36-hour program delves into the intricacies of the BC Building Code (BCBC), focusing on essential aspects such as safety, accessibility, energy efficiency, and compliance. This course is pre-approved by BC Housing for Continuing Professional Development (CPD) points, making it a valuable asset for those seeking to excel as general contractors.