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

No, a 50% deposit upfront is NOT normal in Ottawa and is actually a major red flag that could indicate a scam or financially unstable contractor.

Under Ontario's Consumer Protection Act, contractors cannot legally ask for more than 10% down payment OR $100 (whichever is less) for door-to-door sales. While this specific rule applies to unsolicited sales, it reflects the province's stance on protecting consumers from excessive upfront payments.

What's Normal in Ottawa

Legitimate contractors in Ottawa typically ask for:

• 10-20% to start work - covers initial materials and shows commitment


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


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

For larger projects like kitchen renovations ($25,000-$80,000) or basement finishing, reputable Ottawa contractors will structure payments around actual work completed, not front-load the money.

Why 50% Upfront is Dangerous

Contractors asking for large upfront payments often:

• Have cash flow problems and use your money to finish other jobs


• Are running scams and disappear with your deposit


• Lack proper business financing or credit with suppliers


• Remove your leverage if work quality is poor or timeline slips

Red Flags to Watch For

Beyond excessive deposits, be wary of Ottawa contractors who:

• Show up at your door unsolicited


• Pressure you to sign immediately


• Only accept cash payments


• Can't provide ESA license number (for electrical work)


• Lack WSIB clearance certificate


• Won't provide references from recent Ottawa clients


• Quote significantly below others (often 30%+ lower)

Protect Yourself in Ottawa

Before any payment, verify the contractor through:

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


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


• WSIB Clearance: wsib.ca/clearances


• Better Business Bureau: Check complaints and ratings

For major renovations requiring City of Ottawa permits, ensure they're familiar with ottawa.ca/building portal and current permit processes. A legitimate contractor will discuss permit requirements upfront and factor inspection schedules into their timeline.

Payment Best Practices

Structure payments to protect yourself:

• Small deposit (10-15%) to secure start date


• Material payments only after delivery to your property


• Progress payments tied to completed work phases


• Hold back 10% for 60 days after substantial completion (Ontario law)


• Use credit card for deposits when possible (better fraud protection)

If a contractor insists on 50% upfront, walk away. Ottawa has many qualified contractors who understand proper payment structures and respect consumer protection laws.