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

Yes, you can withhold payment in Ottawa if work doesn't meet contract specifications, but you must follow Ontario's Construction Act rules to protect yourself legally.

In Ontario, homeowners have the right to withhold payment for deficient work, but there's a proper process to follow. Under the Construction Act, you're required to hold back 10% of each progress payment for 60 days after substantial completion - this is called statutory holdback and it's your legal protection.

How to Properly Withhold Payment in Ottawa

If work is unsatisfactory, document everything with photos and written descriptions of deficiencies. Compare the work to your signed contract specifications and any drawings or plans. Send written notice to your contractor detailing specific issues and requesting corrections within a reasonable timeframe (typically 10-15 days).

For the 10% statutory holdback, this money must be held regardless of work quality - it protects you from construction liens. If subcontractors or suppliers aren't paid, they can place liens on your Ottawa property even if you paid the general contractor in full.

What Constitutes Grounds for Withholding

You can legally withhold payment when work doesn't meet Ontario Building Code requirements, deviates significantly from contract specifications, uses materials different from what was agreed upon, or creates safety hazards. However, you cannot withhold payment for minor cosmetic issues or personal preference changes that weren't in the original contract.

Ottawa-Specific Protections

Contact City of Ottawa Building Code Services (613-580-2424) if work doesn't meet code requirements. They can order corrections or stop work entirely. For consumer protection issues, reach out to Ontario's Consumer Protection office through ontario.ca/consumer.

Payment Schedule Best Practices

Never pay large amounts upfront - legitimate Ottawa contractors typically request 10% down, with progress payments tied to completion milestones. A common schedule is 10% to start, 25% at rough-in, 25% at drywall completion, 25% at substantial completion, and final 15% after deficiencies are corrected and you're satisfied.

When Withholding Becomes Risky

Be careful not to withhold payment unreasonably, as this can breach your contract. If disputes escalate, contractors can place construction liens on your Ottawa property or take you to court. Document everything and consider mediation through the Ontario Consumer Protection office before disputes reach legal action.

The key is acting reasonably and in good faith while protecting your rights under Ontario law. When in doubt, consult with a construction lawyer familiar with Ontario's Construction Act before withholding significant payments.