Is it normal for a contractor to ask for a 50% deposit upfront?

No, a 50% upfront deposit is NOT normal in Ottawa and could be a red flag. Under Ontario's Consumer Protection Act, contractors can only request a maximum of 10% down payment or $100 (whichever is less) for door-to-door sales, and industry best practices recommend much lower upfront payments for all projects.

What's Normal for Ottawa Contractors

Reputable contractors typically ask for:

• 10-20% to start - covers initial materials and mobilization


• Progress payments - tied to completion milestones (25% at rough-in, 25% at drywall, etc.)


• Final payment - 10% holdback for 60 days after substantial completion (required under Ontario's Construction Act)

For larger projects in Ottawa ($20,000+), many established contractors will start work with minimal down payment because they have established supplier relationships and working capital.

Why 50% Upfront is Risky

Large upfront payments often indicate:

• Cash flow problems - contractor needs your money to finish previous jobs


• Fly-by-night operations - planning to take money and disappear


• Inexperienced contractors - don't understand proper payment structures


• Potential scams - especially common with door-to-door contractors

Ottawa-Specific Protection Steps

Before any payment, verify the contractor through:

• ESA License Lookup (for electrical): esasafe.com/contractor-locator


• TSSA Certification (for gas/HVAC): tssa.org


• WSIB Clearance Certificate: wsib.ca/clearances - ensures you won't be liable for workplace injuries


• Better Business Bureau: bbb.org/ottawa

For projects requiring permits, ensure they're pulling proper permits through the City of Ottawa (613-580-2424, ottawa.ca/building). Legitimate contractors will handle this process transparently.

Red Flags Beyond High Deposits

Watch for contractors who:

• Demand full payment upfront


• Only accept cash payments


• Pressure you to sign immediately


• Can't provide local references from Ottawa-area clients


• Don't have a permanent Ottawa business address


• Refuse to provide detailed written estimates

Protecting Yourself in Ottawa

Always structure payments around work completion, not contractor convenience. A typical Ottawa renovation payment schedule might be: 10% to start, 30% at rough-in completion, 30% at substantial completion, 20% after final inspection, and 10% holdback for 60 days as required by Ontario law.

If a contractor insists on 50% upfront, it's reasonable to walk away and find someone who follows industry standards. Ottawa has many qualified contractors who understand proper payment structures and consumer protection requirements.

For additional consumer protection resources, contact Ontario's Consumer Protection Office at ontario.ca/consumer or call ServiceOntario at 1-800-889-9768.