Can I withhold payment if the work is not done properly?

Yes, you can withhold payment in Ontario if work is not done properly, but you must follow specific legal procedures to protect yourself from potential lien claims.

Under Ontario's Construction Act, you have the right to withhold payment for deficient work, but this must be done correctly. You cannot simply stop paying without proper notice and documentation, as contractors can file construction liens against your property for unpaid amounts.

Proper Payment Withholding Process in Ottawa

First, document all deficiencies with photos, written descriptions, and dates. Send written notice to your contractor detailing the specific problems and referencing your contract terms about workmanship standards. Give them a reasonable opportunity to correct the issues - typically 10-15 business days depending on the scope of problems.

If the contractor refuses to fix deficiencies or does inadequate repairs, you can withhold payment equal to the estimated cost of having the work corrected by another contractor. Get written quotes from other licensed contractors to establish this amount. Keep detailed records of all communications and evidence.

Ontario's Holdback Protection

Ontario law already requires you to hold back 10% of each payment (including final payment) for 60 days after substantial completion. This holdback specifically protects you from liens and gives you leverage for deficiency issues. Never release this holdback early, even if the contractor pressures you.

During the 60-day holdback period, you can use these funds to address deficiencies. If work quality issues arise after you've made payments, you can still withhold future payments following proper notice procedures.

What Constitutes "Improper Work"

Legitimate reasons for withholding payment include work that doesn't meet Ontario Building Code standards, doesn't match contract specifications, uses substandard materials, or fails City of Ottawa inspections. For electrical work, ESA inspection failures are clear grounds for withholding payment until corrections are made.

However, minor cosmetic issues or personal preference changes typically don't justify withholding payment if the work meets contract specifications and code requirements.

Protecting Yourself from Lien Claims

Even when withholding payment legitimately, contractors can still file construction liens. To protect your property, ensure your reasons are well-documented and legally sound. Consider having a construction lawyer review your situation if significant amounts are involved.

If a lien is filed, you have specific timeframes to respond. Contact a lawyer immediately if you receive lien paperwork, as missing deadlines can result in losing your property rights.

Getting Help with Disputes

For guidance on construction disputes in Ottawa, contact Ontario's consumer protection services at ontario.ca/consumer or call 1-800-889-9768. The City of Ottawa Building Code Services (613-580-2424) can also advise if work meets code requirements.

Document everything, follow proper procedures, and don't let deficient work slide - but ensure your withholding actions are legally justified to avoid complications.