Can I withhold payment if I'm not happy with the contractor's work?

In Ontario, you have specific legal rights to withhold payment for defective or incomplete work, but you must follow proper procedures to protect yourself legally.

Under Ontario's Construction Act, homeowners can withhold payment when work doesn't meet the contract specifications or industry standards. However, this isn't a simple "I don't like it" situation - you need legitimate grounds based on the contract terms or building code violations.

Legitimate Reasons to Withhold Payment in Ottawa

You can legally withhold payment when contractors fail to meet contract specifications, violate Ontario Building Code requirements, or don't obtain required permits through the City of Ottawa. Common valid reasons include incomplete work, defective materials or workmanship, safety code violations that wouldn't pass City of Ottawa inspections, or work that doesn't match the written contract specifications.

For electrical work, if your contractor hasn't obtained proper ESA permits or the work fails ESA inspection, you have grounds to withhold payment until corrections are made. Similarly, for gas work requiring TSSA certification, unpermitted or failed work justifies withholding payment.

How to Properly Withhold Payment

Document everything thoroughly with photos, written communications, and inspection reports. Provide written notice to your contractor specifying exactly what work is defective or incomplete, referencing your contract terms. Give them reasonable opportunity to remedy the issues - typically 10-15 days in writing.

Only withhold the portion of payment related to the defective work, not the entire amount if other work is satisfactory. Continue paying for completed, satisfactory work to maintain your legal position.

Ontario's Holdback Protection

Remember that Ontario's Construction Act requires you to hold back 10% of each payment for 60 days after substantial completion anyway. This holdback protects you from liens and gives you leverage for deficiency corrections. Don't release this holdback until you're completely satisfied with all work.

What You Cannot Do

You cannot withhold payment simply because you changed your mind about design choices, decided you want different materials than specified in the contract, or have minor cosmetic preferences that don't affect functionality or code compliance.

Getting Help in Ottawa

If disputes escalate, contact the City of Ottawa Building Code Services at 613-580-2424 to verify if work meets code requirements. For consumer protection issues, reach out to Ontario's consumer protection office. Consider hiring an independent inspector to document deficiencies - this strengthens your position if legal action becomes necessary.

Document your position carefully and communicate in writing. When done properly, withholding payment for legitimate deficiencies is your right under Ontario law, but improper withholding can put you in breach of contract.