How do I set a renovation budget?

Setting a renovation budget in Ottawa requires understanding both your project costs and the regulatory expenses specific to our city - from permit fees to mandatory inspections that can add $500-2000+ to your total project cost.

When budgeting for renovations in Ottawa, you need to account for several city-specific costs that many homeowners overlook. Start by getting at least three detailed quotes from licensed contractors, but remember that in Ottawa, certain trades require specific licensing that affects your costs.

For electrical work, only Licensed Electrical Contractors (LEC) can pull ESA permits, and you'll need to budget $100-200 for ESA inspections on top of the contractor's fees. You can verify any electrician's license at licensing.esasafe.com before getting quotes. For gas or HVAC work, ensure contractors are TSSA-certified (check at tssa.org) as uncertified work will fail inspection and cost you twice.

Ottawa Permit Costs to Include:
Simple renovation permits typically run $200-500, while structural changes or additions can cost $500-2000+ in permit fees alone. The City of Ottawa Building Code Services (613-580-2424) can give you specific permit costs for your project. Factor in 15-25 business days for standard permits, or 4-8 weeks for complex projects - delays can increase costs if contractors need to reschedule.

The 20-30% Contingency Rule for Ottawa:
Add 20-30% to your base quote for unexpected issues. Ottawa's older homes (especially in areas like the Glebe, Westboro, or Sandy Hill) often reveal surprises like knob-and-tube wiring or asbestos that require immediate attention and additional permits.

Understanding Contractor Quotes:
Legitimate Ottawa contractors should provide detailed quotes breaking down materials, labor, permits, and applicable taxes. Be wary of quotes that seem too low - they often exclude permit costs, proper licensing fees, or WSIB coverage. Always verify WSIB clearance certificates at wsib.ca/clearances before signing contracts.

Payment Structure Protection:
Under Ontario's Construction Lien Act, never pay more than 90% until final completion - hold back 10% for 60 days after substantial completion. This protects you from liens and ensures quality work. Avoid contractors demanding large upfront payments or full payment before completion.

Red Flags That Increase Costs:
Contractors who can't provide ESA or TSSA license numbers, won't pull proper permits, or pressure you to pay cash "to save on taxes" will ultimately cost more when work fails inspection or needs to be redone to code.

Contact the City of Ottawa at ottawa.ca/building to understand specific permit requirements for your project before finalizing your budget. This ensures you're comparing apples-to-apples when evaluating contractor quotes and won't face surprise regulatory costs mid-project.

Remember: a proper budget protects you from both cost overruns and the contractors who cause them.