How to Choose a Renovation Contractor in Ontario

Choosing a contractor is the decision that most affects how a renovation goes. In Ontario, almost anyone can call themselves a general contractor, so the work is yours: find candidates, check them properly, ask the same questions of each, and put the agreement in writing. The order matters. Decide the scope and budget first, then look for someone who can build it, then compare quotes on equal terms, then sign a contract that covers payments, changes and holdback. A contractor who is good at the work but vague on paper is still a risk.

Start with a plan, not a contractor

A contractor prices what you describe. If the scope is loose, every quote will cover something different and you cannot compare them. Before calling anyone, write down what is being changed, what stays, the finishes you have in mind and the order you want the work done. Decide whether the work needs a building permit; many structural, plumbing and basement finishing jobs do, and the rules differ by municipality, so check with your municipality’s building department. How to plan a home renovation in Ontario, step by step sets out that sequence in more detail.

This planning stage also tells you what kind of help you need. A small cosmetic job may only need a couple of trades. A kitchen, an addition or a whole-home renovation usually needs someone coordinating several trades, scheduling inspections and carrying the contract.

General contractor or managing the trades yourself

There are two ways to run a renovation. You can hire a general contractor who takes responsibility for the whole job, or you can act as your own coordinator and hire each trade directly.

Managing trades yourself can work for a straightforward job with a few steps, and it gives you direct control. It also makes you the scheduler, the person chasing the electrician so the drywaller can start, and the one holding the contracts when something goes wrong. On a job with several trades and inspections, a general contractor is usually worth considering for that coordination alone.

Where to find candidates

Most homeowners find contractors through people they know: neighbours who have had similar work done, friends, relatives, colleagues. A recommendation from someone who has lived with the finished work for a year or two is more useful than one from a job completed last month. Local tradespeople you already trust, such as a plumber or an electrician, sometimes know reliable general contractors. Trade associations and local builder groups can also provide member lists, though membership is not a guarantee of quality.

Avoid choosing on the strength of an advertisement alone. Whatever the source, the same checks apply to every candidate.

What to check before you sign anything

Written references and past work

Ask for the names and contact details of several recent clients, and actually call them. Ask how the contractor handled problems, whether the schedule held, whether the site was kept tidy, and whether the final price matched the quote. Where possible, look at completed work, not just photographs.

Business details

Confirm the legal business name, address and contact information. A contractor who will not give a business address or who works only through a mobile number is hard to hold to a contract.

Liability insurance

Ask for a certificate of insurance showing current liability coverage, and check that it covers renovation work. If a worker is injured or a neighbour’s property is damaged, insurance is what stands between the contractor and you.

WSIB coverage

In Ontario, contractors with workers generally need coverage through the Workplace Safety and Insurance Board (WSIB). Ask for a clearance certificate and check that it is current. If an uninsured worker is injured on your property, the consequences can reach you.

Trade licences and permits

Some work must be done by licensed or registered trades, and the contractor should be able to tell you who will do it:

• Electrical: paid electrical work must be done by a Licensed Electrical Contractor (LEC), who files the permit with the Electrical Safety Authority (ESA).
• Gas: gas lines and appliances must be installed by a TSSA-registered contractor using certified gas technicians.
• Plumbing: plumbing work needs a municipal plumbing permit and a licensed plumber.
• Structural work: removing a load-bearing wall or adding a beam needs a design by a qualified designer or engineer and a building permit.

Ask which trades will be subcontracted and who pays them. A contractor who suggests skipping a permit for work that clearly needs one is telling you something important about how the rest of the job will be run.

Questions to ask at the first meeting

Bring the same list to every contractor so you can compare answers:

1. Who will be on site day to day, and who is your main contact?
2. How many jobs are you running at once, and when could you start?
3. Which parts of the work will you do yourselves and which will be subcontracted?
4. Who pulls the permits, and who meets the inspector?
5. How do you handle changes once work has started?
6. What is your payment schedule, and what deposit do you ask for?
7. Can you provide written references and proof of insurance and WSIB coverage?
8. What warranty do you give on your work, and in writing?
9. How will the site be protected and cleaned, and who is responsible for waste removal?
10. What could go wrong on a job like this, and how would you deal with it?

A good contractor answers these plainly and puts the answers in the quote. Vague answers, or pressure to decide on the spot, are a reason to keep looking.

Compare quotes on the same scope

Get written estimates from at least three contractors, all based on the same written scope. A quote should separate labour and materials, say what is included and excluded, state whether HST is included, and give a start and completion date. A very low quote often means something has been left out, not that you are getting a bargain. How to compare renovation quotes and estimates explains how to line them up.

Under Ontario’s Consumer Protection Act, 2002, a contractor may not charge more than 10% above a written estimate unless you agree to new or different work or a new price. That protection only helps if the estimate is written and detailed.

The contract, the deposit and the holdback

A home renovation contract must be in writing under the Consumer Protection Act, 2002. The province advises that it include the contractor’s name, address and contact details, a detailed description of the work and materials, warranties, the total price and payment terms, start and completion dates, the payment schedule and deposit, who cleans up, and which trades are subcontracted and who pays them. Renovation contract checklist for Ontario homeowners covers each item.

The province recommends a deposit of no more than 10% of the contract price. Be cautious with any request for a large payment up front, or for cash with no receipt.

Ontario’s Construction Act also requires every payer, homeowners included, to hold back 10% of each payment for a period. The holdback is your protection if a subcontractor or supplier is not paid and registers a lien on the property. A subcontractor can lien a home even when the general contractor has been paid in full. Holdbacks and construction liens: what Ontario homeowners should know explains how the holdback and lien periods work. How the Act applies to your own contract is a question for a lawyer.

Any change to the scope, price or schedule should be written and signed by both sides before the extra work is done.

What goes wrong, and how to avoid it

Most contractor problems start before the work does. These are the common ones:

• No written contract or a one-page contract. Without a written scope and payment schedule, disputes become one person’s word against another’s.
• A large deposit or cash-only payment. The province recommends a deposit of no more than 10%. Cash-only requests usually mean no paper trail and no protection.
• Pressure to sign at the door. A contract signed in the home can be cancelled for any reason within 10 days of receiving the written copy, but the better move is not to sign under pressure at all.
• No permit for work that needs one. Covering work before it is inspected can mean opening it up again. The permit card must be posted where it is visible.
• Skipping the holdback. Paying each invoice in full with no holdback removes your main protection against liens.
• Uninsured or unregistered workers. Check insurance and WSIB clearance before work starts, not after an accident.
• Unlicensed electrical or gas work. Electrical work needs an ESA permit filed by a Licensed Electrical Contractor; gas work needs a TSSA-registered contractor. A handyperson cannot do either for pay.
• No utility locates before digging. Before any digging for footings, posts or a foundation, request locates through Ontario Dig Authority (formerly Ontario One Call). It is free and required by law, and should be requested at least 5 business days before digging.
• Changes made verbally. A verbal change is a dispute waiting to happen. Write it down and sign it.
• Relying on Tarion for a renovation. Tarion’s warranty covers new homes built by licensed builders; it does not cover renovations or additions to an existing house. For those, your protection is the written contract, the contractor’s own warranty and insurance.

One more check is worth making on older homes. If the house was built before 1990, suspect materials such as asbestos may be present, and a home built before 1960 probably contains lead-based paint. Ask how the contractor will handle demolition and whether suspect materials will be tested before work starts. Have removal done by trained asbestos professionals, and do not disturb vermiculite insulation.

Before work starts

Confirm the permit is issued and posted, the insurance and WSIB documents are current, the contract and payment schedule are signed, and the utility locates have been done. Agree on site access, working hours, where materials will be stored and how waste will be removed. Keep a folder with the contract, the drawings, the permit, the inspection record and every change order. That folder is what you will rely on if anything is disputed later.