Is a verbal agreement with a contractor legally binding in Ontario?

Yes, verbal agreements with contractors are legally binding in Ontario, but they're extremely difficult to prove and enforce - which is why you should never rely on them for construction work.

Under Ontario contract law, verbal agreements can be legally valid if there's an offer, acceptance, and consideration (payment). However, when it comes to construction projects in Ottawa, verbal agreements create massive risks for homeowners that far outweigh any convenience.

Why Verbal Agreements Are Dangerous for Ottawa Homeowners

The biggest problem isn't whether the agreement is legally binding - it's proving what was actually agreed upon. Without written documentation, you'll face "he said, she said" situations when disputes arise. Construction projects involve complex details about materials, timelines, change orders, and payment schedules that are impossible to remember accurately months later.

Ontario's Construction Act (formerly the Construction Lien Act) provides important protections for homeowners, including the right to hold back 10% of payments for 60 days after substantial completion. These protections are much harder to enforce without proper written contracts that clearly outline payment schedules and completion dates.

What Ottawa Building Code Services Requires

For any work requiring permits in Ottawa (which includes most significant construction), the City requires written documentation showing the contractor's details, scope of work, and ESA or TSSA licensing numbers where applicable. You can't properly apply for permits at ottawa.ca/building without this information clearly documented.

Essential Elements Your Written Contract Must Include

Your written agreement should specify the contractor's WSIB clearance certificate number, ESA license number (for electrical work), or TSSA certification (for gas/HVAC work). Include detailed material specifications, timeline with penalties for delays, change order procedures, and payment schedule tied to completion milestones.

The contract should also reference applicable building codes and permit requirements, specify who obtains permits, and include warranty terms. For projects over $50,000, ensure lien holdback provisions are clearly outlined.

Red Flags When Contractors Avoid Written Contracts

Legitimate contractors in Ottawa always provide written contracts. Be extremely wary of contractors who say "we can start right away with just a handshake" or "written contracts slow things down." These are classic signs of unlicensed operators or scammers who disappear when problems arise.

Protecting Yourself in Ottawa

Always verify the contractor's credentials through esasafe.com (for electrical), tssa.org (for gas/HVAC), and wsib.ca for clearance certificates. Get everything in writing before any work begins, and never pay large amounts upfront. For disputes, contact Ontario's consumer protection office or consider the Construction Industry Dispute Resolution process.

Remember: reputable contractors in Ottawa want written contracts as much as you do - they protect both parties and demonstrate professionalism.