Is a verbal agreement with a contractor legally binding?

Yes, verbal agreements with contractors are legally binding in Ontario, but they're extremely difficult to enforce and offer little protection to homeowners.

Under Ontario law, verbal contracts are valid for construction work, but proving the terms becomes nearly impossible when disputes arise. Without written documentation, it becomes a "he said, she said" situation that rarely favors the homeowner.

Why Verbal Agreements Are Risky in Ottawa Construction

The Ontario Consumer Protection Act requires written contracts for home improvement services over $50. This means any significant renovation work in Ottawa legally must have a written agreement. Contractors who insist on verbal-only arrangements for substantial projects are operating outside the law and should be avoided.

Even for smaller jobs, verbal agreements create massive problems. When your contractor in Kanata claims the scope was different, or your Orleans contractor disputes the agreed price, you have no documentation to support your position. Ottawa's Building Code Services can't help resolve payment disputes - they only handle permit and code compliance issues.

What Ottawa Homeowners Must Insist On

Every contractor agreement should be in writing and include specific details: exact scope of work, materials specifications, timeline, total cost breakdown, payment schedule, permit responsibilities, and change order procedures. The contract should clearly state who obtains permits (usually the contractor for major work) and include their ESA license number for electrical work or TSSA certification for gas work.

For projects requiring City of Ottawa permits, the written contract becomes even more critical. Permit applications require detailed plans and specifications that match your agreement. If there's confusion about scope, the permit process will expose these gaps immediately.

Red Flags to Watch For

Contractors who prefer verbal agreements often do so to avoid accountability. They may not be properly licensed, insured, or registered with WSIB. Always verify your contractor through ESA's website (esasafe.com) for electrical work, TSSA's database for gas work, and request current WSIB clearance certificates.

Be especially wary of door-to-door contractors or those pressuring you to "start immediately" without proper documentation. Legitimate Ottawa contractors understand the importance of written agreements and building permits.

Protecting Yourself

Never pay large sums upfront based on verbal promises. Ontario's Construction Lien Act allows you to hold back 10% of payments for 60 days after completion, but this protection only works with proper documentation. Without a written contract, you can't prove what constitutes "completion."

If a contractor insists on verbal-only arrangements, walk away. Contact the City of Ottawa Building Code Services (613-580-2424) to verify permit requirements for your project, and always get multiple written quotes from licensed, insured contractors.

For consumer protection issues, contact Ontario's consumer protection office. Remember: a handshake deal might feel friendly, but it leaves you legally vulnerable when problems arise.