How do I resolve a dispute with my contractor?

If you're having a dispute with your contractor in Ottawa, start by documenting everything in writing and attempting direct communication before escalating to formal dispute resolution through Ontario's consumer protection agencies or the courts.

Step 1: Document and Communicate Directly

First, gather all your documentation - contracts, change orders, photos, emails, and payment records. Write a clear letter to your contractor outlining the specific issues, what you expect as resolution, and set a reasonable deadline (typically 10-14 days). Send this by email and registered mail to create a paper trail.

Many disputes stem from miscommunication or unclear expectations, so this direct approach often resolves issues without formal intervention.

Step 2: Review Your Contract and Ontario Rights

Check your contract for dispute resolution clauses, warranty terms, and completion dates. Under Ontario's Consumer Protection Act, you have specific rights when hiring contractors for home improvements. If work was done improperly or not completed as agreed, you may be entitled to have it corrected at the contractor's expense.

For contracts over $50, you have a 10-day cooling-off period from signing. If the contractor didn't provide proper disclosure documents or started work during the cooling-off period, you may have additional remedies.

Step 3: Verify Licensing and Insurance

Check if your contractor is properly licensed through ESA (for electrical work) at esasafe.com, TSSA (for gas work) at tssa.org, and has valid WSIB clearance at wsib.ca. If they're working without proper licensing or insurance, this strengthens your position and may involve regulatory violations.

Contact the City of Ottawa Building Code Services at 613-580-2424 if permit work wasn't done properly or permits weren't obtained when required.

Step 4: Formal Complaint Options

If direct communication fails, you have several escalation paths:

Consumer Protection Ontario: File a complaint at ontario.ca/consumer or call 1-800-889-9768. They can investigate unfair business practices and may mediate disputes.

Better Business Bureau: File a complaint at bbb.org for mediation services, though this isn't legally binding.

Professional Associations: If your contractor belongs to associations like the Ottawa Construction Association or Tarion (for new home warranties), file complaints through their dispute resolution processes.

Step 5: Legal Action and Holdbacks

For serious disputes, consult with a lawyer specializing in construction law. Small Claims Court in Ontario handles disputes up to $35,000 and is designed for self-representation.

If you haven't made final payment, Ontario's Construction Act requires you to hold back 10% of the contract value for 60 days after substantial completion. This holdback protects you from liens and gives leverage in disputes.

Step 6: Protecting Against Liens

If subcontractors or suppliers weren't paid by your contractor, they can place construction liens on your property. The 10% holdback period is crucial protection - don't release final payment until this period expires and you've confirmed no liens were filed.

Red Flags Requiring Immediate Action

Contact Consumer Protection Ontario immediately if your contractor demanded full payment upfront, started work without permits, is unlicensed for the work being performed, or has disappeared mid-project. These may constitute fraud requiring police involvement.

Keep detailed records throughout any dispute process, as documentation is crucial for successful resolution whether through mediation, regulatory action, or court proceedings.