What licences and trade certifications matter when buying or selling a plumbing business in Ontario?

In Ontario, the work a plumbing company can lawfully do depends on the people doing it. Skilled Trades Ontario states that plumber is a compulsory trade, and the Building Opportunities in the Skilled Trades Act, 2021 puts duties on both the individual and the business that engages them. Separately, the Building Code Act, 1992 requires a permit before a building is constructed, and its definition of a building reaches plumbing not located in a structure. This page covers Ontario only; for the general picture, see buying a plumbing contractor in Canada.

Plumber is a compulsory trade

Skilled Trades Ontario states that, because the plumber trade is compulsory, a person must hold a Registered Training Agreement, Provisional Certificate of Qualification or Certificate of Qualification to practise it legally in Ontario, and their information must appear on the Public Register. It also states that a Certificate of Qualification in this trade must be renewed to be valid. Under section 17 of the Act, a provisional certificate of qualification has the prescribed term or, if none is prescribed, a term of one year, unless the Registrar grants an extension under the regulations, so its end date is worth noting. Section 10 has the Registrar issue a certificate of qualification to an individual, so a purchase agreement can list the people who hold them, but the certificates stay with those people.

The business has its own duty under the Act

Section 6 of the Building Opportunities in the Skilled Trades Act, 2021 says no individual shall practise a compulsory trade unless they are an apprentice in that trade working under a registered training agreement that is not suspended, hold a certificate of qualification or provisional certificate in that trade that is not suspended, or a regulation exempts them. Section 7 applies the same test to any person who employs or otherwise engages the individual. After closing, the buyer’s company is the one employing or engaging the crews, so it is worth checking each person’s status before closing. Section 9 adds that a holder of a certificate of qualification or provisional certificate shall carry proof of certification and produce it on request to an inspector or a person authorized by regulation, so ask to see current proof for each tradesperson, not a list of names.

Permits under the Building Code Act, 1992

Section 8(1) says no person shall construct or demolish a building, or cause one to be constructed or demolished, unless the chief building official has issued a permit. The Act defines “construct” to include installation, defines “plumbing” as a drainage system, a venting system and a water system or parts of them, and includes in “building” plumbing not located in a structure. Whether a given job needs a permit is a question for the local building department, so ask how the company has handled permits and whether any are open. The Act also says no person shall construct or demolish a building except in accordance with the Act and the building code, and in accordance with the plans and specifications on which the permit was issued, or changes the chief building official has authorized. Past work that departed from a permitted plan is therefore a question to raise with the seller.

Gas technicians and plumbing limits

If a plumbing business also does gas work, O. Reg. 215/01 matters. Made under the Technical Standards and Safety Act, 2000, it allows a G.1 certificate holder (and, under section 21, a G.2 holder) to disconnect and reconnect water piping in order to exchange, service or install an approved appliance. It adds that the person shall not perform any additional plumbing unless they hold a certificate of qualification or provisional certificate in the trade of plumber or steamfitter that is not suspended. The regulation also says a certificate is not transferable, so a buyer asks which individuals hold which.

WSIB purchase certificate

The WSIB says that if you are selling or purchasing a business’ assets, you should get a purchase certificate. It also says the WSIB may hold the purchaser liable for all amounts owed by the vendor up to the date of sale if there is no valid purchase certificate, and that the request must be made before the date of sale. That rule is not specific to plumbing, but it applies to a plumbing asset purchase. The WSIB adds that if you are selling shares, a new legal entity is not created, so a purchase certificate is not required. Because the WSIB says the request must be made before the date of sale, build it into the closing timetable early rather than leaving it to the last week.

What to ask before closing

• Who holds a Certificate of Qualification or Provisional Certificate, and does each appear on the Skilled Trades Ontario Public Register?
• Which apprentices work under a registered training agreement, and does each agreement stay in force after the sale?
• Which jobs required a building permit, and are any permits still open or unresolved?
• Do any gas technicians do plumbing work beyond what O. Reg. 215/01 allows them?
• Has a WSIB purchase certificate been requested before the date of sale?