Letters of Good Standing & Clearances
A letter of good standing can be requested at any time. It is valid on the day it is requested. Once a contract has been awarded and before work begins, the principal can request a letter of good standing from us. This letter will tell the principal if the contractor has an account with us and if all premiums are paid.
A clearance is a letter from us that tells the principal that they can make a payment to a contractor for completed work. Clearances are obtained after the work is completed, but before payment is made. All contract situations require clearances. By requesting clearances, principals protect themselves from having to pay any overdue premiums the contractor owes us. They also help us identify new employers and make sure that all employers are being treated fairly.
Your secure online account also gives you access to the Automatic Clearance Verification (ACV) system. This system provides automatic email notification of any changes in the clearance status of any contractors you list. The system allows you to maintain a list of frequently used contractors, and update the contract amounts as you pay the contractor. With the ACV system, you don’t have to get individual clearances. It is useful for firms who hire the same contractors on a regular basis. If a status changes, you can log in to see what we are advising you to do.
When you get a clearance, you will see one of the following statuses:
- Cleared – pay the contractor.
- Deemed – no account, considered your worker.
- Hold – do not pay the contractor; wait for further information.
- Demand – pay the WCB the sum requested from the amount you owe the contractor.
- Pending – a review of the contractor’s account is required; wait for further information.